The Malaysian economy has continued to grow on the back of structural reforms, despite global turbulence and uncertainty. In the third quarter of 2024, the economy expanded by 5.3%, driven by strong investment activity and continued export growth. This brings GDP growth in the first nine months of 2024 to 5.2%, up from 3.8% in the same period last year. The robust performance reflects both business and consumer confidence in the Malaysian economy and the government’s economic management.
The government has reaffirmed its commitment to strengthening governance and economic transformation as outlined in the MADANI Economy framework, designed to prepare the nation for an increasingly dynamic and complex global economy.
Boosting Strategic Growth Pillars
Malaysia is poised to emerge as a semiconductor powerhouse as global demand for high-tech equipment grows, driven by ongoing digital transformation across industries and the shift toward electric vehicles and renewable energy. The National Semiconductor Strategy provides clear policy direction to support the goal of elevating the sector further up the global value chain.
Meanwhile, the digital economy is one of the fastest-growing sectors in the country, contributing 23% to Malaysia’s GDP in 2023. The government has approved digital investments worth RM185.3 billion (US$41.4 billion) between 2021 and June 2024, including ventures from global tech giants, to underscore its commitment to further developing the sector.
The services industry, a cornerstone of Malaysia’s economy, continues to thrive, attracting a steady flow of investments. Real estate, information and communication technology and transportation services are among the top-performing sub-sectors.
The government is focused on attracting investments in strategic high-growth and high-value industries that will steer the nation toward an innovation-driven economy, ensuring long-term resilience.
Advancing Climate Goals and Sustainability
Malaysia remains deeply committed to its sustainability goals, aiming to achieve net zero by 2050 and reduce economy-wide carbon intensity by 45% by 2030. Its decarbonization efforts encompass the adoption of energy efficiency measures, renewable energy sources, improved waste management practices and cutting-edge technologies.
As Malaysia’s national energy company, PETRONAS plays a crucial role in advancing these goals. The firm is accelerating the energy transition through various pathways, including fostering and fortifying innovation ecosystems to deliver expedited, impactful solutions that shape a lower-carbon future. The group collaborates with businesses, educational institutions and government agencies to drive technological advancements, economic growth and climate actions. PETRONAS is also pursuing opportunities in high-value, lower carbon new businesses, including carbon capture and storage, renewables and hydrogen, in line with national energy and sustainability ambitions.
Another sustainability-driven corporation is Sunway Group, which celebrates its 50th anniversary this year. Sunway has built its enduring success by pioneering a sustainable approach to urban planning, starting with Sunway City Kuala Lumpur, Malaysia’s first integrated sustainable township. With a unique Build-Own- Operate business model, Sunway is determined to play a role in providing good governance for its communities, regularly investing in projects that promote socioeconomic development and environmental protection. Sunway City Ipoh, the company’s second township, has an additional RM4 billion (US$920 million) worth of investment to support the city’s sustainable socioeconomic growth in the next decade.
Looking Ahead
Regionally, Malaysia calls for enhanced cooperation and solidarity among its neighbors as it assumes the chairmanship of ASEAN in 2025. It aims to push for greater commitment to enhance ASEAN intra-trade and investment and establish climate-conscious policies that will benefit all member countries.
Looking ahead, Malaysia will continue “to embrace a spirit of openness, with a readiness to adapt, innovate and constantly push the boundaries of what is possible,” as stated by Prime Minister Anwar Ibrahim.
Artificial intelligence (AI) and data technologies have evolved rapidly, reshaping industries over the past few years. No longer just a tool for segmenting customers by demographics or purchase patterns, AI now drives strategic decisions, transforming industries by enhancing customer experience and improving efficiency.
ADA, an AI and data company operating in 12 markets in Asia, has been a key player in this transformation. Over the past six years, it has grown significantly, becoming a leader in digital and data-driven business transformation across Asia.
Asia’s AI and Tech Leader
Founded in 2018, ADA has helped enterprises achieve their business goals, especially in marketing and commerce. Its data-driven approach has fueled rapid growth, making it one of Asia’s largest independent data, AI, and technology firms.
ADA employs more than 1,400 people and serves over 1,500 clients in 12 markets, including Japan, South Korea, India, and ASEAN countries. Its customers span various sectors, such as banking, insurance, retail, fashion, oil and gas, telecommunications, food and beverage, and automotive.
ADA’s AI CoPilots unify disparate data, visualize insights, and use AI models to drive real-time decisions.
Srinivas Gattamneni, CEO of ADA, attributes the company’s success to its deep belief in the power of data and AI. “Our foundation is built on the conviction that AI is the future of data,” he says. “We focus on helping clients establish strong data foundations through engineering and analytics, enabling them to turn that data into personalized actions. From there, our AI CoPilots and digital operations drive impactful outcomes across the entire customer journey, fueling commerce success at every touchpoint.”
Gattamneni emphasizes ADA’s focus on business impact for clients. “Everything we do is outcome-driven, whether it’s driving sales and revenue growth, increasing customer lifetime value, or reducing customer acquisition costs,” he says. “Our goal isn’t just to provide solutions but to deliver measurable, transformative results.”
AI’s Growing Influence
AI is now a critical driver of revenue and growth, not just a supporting tool. Gattamneni says AI influences up to 35% of revenue in global industries, highlighting its role in shaping consumer behavior.
Sectors like travel and financial services have seen significant impacts from AI-driven innovation, while many traditional industries are just beginning to explore AI’s potential. “The trend is still in its infancy, but AI’s influence will grow across all sectors. We’re on the brink of a future where AI will be central to everything from content creation and marketing to commerce,” says Gattamneni.
Hyper-Customization at Scale
Data and AI are set to revolutionize marketing and commerce further in the coming years, particularly through hyper-personalization. Current personalization targets broad segments, but AI enables truly individualized strategies.
Srinivas Gattamneni, CEO of ADA
“With generative AI, we’re moving toward one-to-one marketing. Brands will be able to create highly personalized, dynamic content for individual consumers at a fraction of the historical cost,” Gattamneni says. “What was once cost-prohibitive is now achievable, allowing companies to engage consumers in a more meaningful, tailored way. We can now produce individually personalized creative content for close to one cent,” he adds.
Real-time pricing is another emerging trend, with product prices usually based on historical data. “With AI, companies can implement real-time pricing using factors like consumer demand, competitors’ pricing, marketing strategy, supply chain, and overall consumer behavior,” he says.
Gattamneni expects augmented reality (AR) and virtual reality (VR) to play bigger roles in the future of commerce, allowing consumers to visualize how products fit into their lives. For example, consumers can use AR to virtually try on clothes, shoes, and accessories from home, offering a personalized shopping experience and eliminating the need to visit stores.
Building a Strong Data Foundation
ADA’s advantage, Gattamneni says, is its team of data scientists, data engineers, analysts, and industry specialists, whose combined expertise helps the company understand clients’ needs and deliver tailored solutions to meet business goals.
One key solution driving significant momentum is ADA’s suite of proprietary AI CoPilots. Launched in April, the CoPilots combine disparate data sets, visualize key insights in robust dashboards, and use AI models to support critical real-time decisions.
There are four versions: CoPilot for Full Funnel Marketing, CoPilot for Ecommerce, CoPilot for Conversational AI, and CoPilot for Customer Segmentation. “If you’re an e-commerce specialist, you can use CoPilot to get an integrated view of performance across all channels. You’ll see where demand is coming from, and with predictive and prescriptive AI models, you can make quick decisions on operations, pricing, and demand planning across channels and marketplaces,” he says.
“Our foundation is built on the conviction that AI is the future of data. We focus on helping clients establish strong data foundations through engineering and analytics, enabling them to turn that data into personalized actions.”—Srinivas Gattamneni
“For e-commerce specialists, CoPilot can help you make better marketing decisions across the full funnel and get a clear visibility of every dollar spent,” Gattamneni explains. “The response has been amazing. We already have about 100 clients across the region using CoPilot as part of their day-to-day operations.”
Global Expansion and Proficorn Ambitions
While ADA’s success in Asia is notable, the company is pursuing global expansion and aims to enter the U.S. market within six months. ADA already manages digital transformation for U.S.-based clients in Asia.
ADA is present in 12 countries in Asia.
“We see exciting opportunities in the U.S., with its openness to innovation and startups,” says Gattamneni. In 2023, Japan’s Mitsui & Co., Ltd. invested US$58 million in ADA, valuing the company at US$550 million. Other investors include Japan’s SoftBank Group Corp., Sumitomo Corp., and Malaysia’s Axiata Group Berhad.
However, ADA is not just chasing unicorn status. Gattamneni stresses the focus on becoming a “proficorn”—a profitable unicorn. “We’re scaling sustainably, focusing on long-term value creation,” he says.
Thailand’s much-anticipated One Bangkok neighborhood finally opened its doors to the public on October 25, 2024, marking a significant milestone for master developer Frasers Property. Nestled in the vibrant heart of Bangkok, at the intersection of Wireless Road, this monumental project is poised to redefine urban living in Asia. As the largest fully integrated district in Thailand, One Bangkok aspires to blend lifestyle, culture and sustainability, creating a new landmark in the heart of the city while fostering a community where live, work and play come together.
Visitors and residents can enjoy unique lifestyles and shopping experiences, alongside world-class art and cultural programs. The development leverages smart city innovation and sustainable design to enhance quality of life by providing a secure, convenient and inclusive space accessible to all.
“By paying careful attention to every detail, from master planning and design to construction and business operations, we are crafting ‘The Heart of Bangkok’ to be an inspiring wonder in everyone’s heart,” says Panote Sirivadhanabhakdi, Group CEO of Frasers Property.
Occupying 1.83 million square meters or about 17 hectares, in the city’s central business district, One Bangkok is larger than New York’s Hudson Yards development. It is a fully integrated ecosystem designed to meet the diverse needs of its residents, workers and visitors. The development includes five premium office towers, three ultra-luxury residential towers, five world-class hotels, three retail zones and One Bangkok Forum, a live entertainment arena—each constructed to meet the highest standards of design and functionality.
Parade Park
Sustainability is at the core of One Bangkok’s design. In a city where urban space is scarce, dedicating almost half of the district’s land area to green and open spaces is truly impressive.
This commitment to creating a healthy, vibrant environment is evident in the inclusion of One Bangkok Park, Parade Park and Wireless Park, which stretch along Rama IV and Wireless Roads. These green spaces provide a natural extension to the nearby Lumphini Park and Benjakitti Park, enhancing the overall urban landscape and offering residents and visitors a refreshing escape from the bustling city life.
One Bangkok is the first project in Thailand to receive the LEED for Neighborhood Development (LEED-ND) Platinum standard and aims to achieve the WELL Platinum standard as well. The development has also attained the Platinum WiredScore and SmartScore certifications, reflecting its commitment to sustainability and smart city principles and meeting international standards for long-term sustainability.
Parade
Transforming the Retail Experience
While One Bangkok’s residential and commercial spaces are impressive, its district retail spaces are poised to set it apart. As Thailand’s first lifestyle-focused development of this scale, One Bangkok aspires to introduce a new model for retail experiences that aspires to elevate the city to become a new Asian shopping metropolis with sensational lifestyle experiences.
One Bangkok welcomes the world as the city’s beating heart of shopping and lifestyle, showcasing a new experiential hub that is expected to offer uniquely different retail concepts, designs and experiences that are seamlessly interconnected. Consisting of three distinct retail zones, the all-inclusive Parade is expected to attract families, and The Storeys with unique, concept stores are now open. Post 1928, Bangkok’s first shopping street, is expected to offer a progressive, dynamic luxury shopping and will open in its next phase.
Mitsukoshi Depachika
One Bangkok is set to offer unique retail concepts and distinct shopping styles that promise to be unparalleled. For instance, Mitsukoshi Depachika, the one-of-a-kind “Depachika” concept supermarket and food hall that will be located within the Parade, provides indulgent world-class selections for all food enthusiasts. Shoppers can expect high-quality fresh produce from exclusive farmer networks. In addition to the supermarket assortment, the food hall features well-known and never-before-seen Japanese brands, pastry boutiques, cafes and restaurants.
The retail experience at One Bangkok is further enhanced by the Retail Loop, a vast corridor that will eventually feature over 900 stores, encompassing entertainment venues, restaurants and a repertoire of lifestyle offerings. Another highlight is the Bangkok Wonder Food Loop, a 1.5-kilometer stretch dedicated to culinary delights. Here, visitors can enjoy a new dining destination, offering all-day dining experiences and after-work hangout spots with over 250 fine dining restaurants, rooftop bars and street food vendors offering a global culinary journey.
King Power City BoutiqueSARAPAD THAI
Look out for the one-of-a-kind “Made in One Bangkok” experiences exclusively curated to draw local and foreign visitors alike, including King Power City Boutique, for duty-free and travel retail products across two floors of the Parade as well as SARAPAD THAI, a curated lifestyle store capturing the essence of modern Thai culture with home décor, apparel and daily essentials. Those who love a modern concept bookstore with lifestyle elements should visit One Content store, set to become Bangkok’s new check-in spot for influencers.
The Art and Cultural Hub
One Bangkok’s commitment to art and culture is also evident throughout the district. The Art Loop is an open-air museum spanning over two kilometers, combining world-class art and cultural programs.
Recently, One Bangkok announced the installation of permanent public sculptures by world-renowned artists, including Anish Kapoor and Tony Cragg. These sculptures will be integral to the Art Loop, creating an inspiring and engaging environment for visitors. The district’s cultural offerings are designed to make art accessible to everyone, fostering a sense of community and enhancing the overall visitor experience.
A must-visit destination at One Bangkok is The Wireless House One Bangkok. This reconstruction of Thailand’s first Radio Telegraph Station from 1914 serves as a cultural learning space and hangout for urban dwellers, connecting its past with the modern character of One Bangkok.
The Storeys
A Welcoming Space for All
With the development now open, One Bangkok invites visitors from around the world to explore its wide range of offerings. From world-class performances and exhibitions at the One Bangkok Forum to seasonal and festival celebrations in its expansive open spaces, including One Bangkok Park, there is always something happening at this welcoming and vibrant destination.
Whether you are a local resident, a business professional or a global traveler, One Bangkok is shaping up to be a must-visit destination for anyone looking to experience the future of urban living. Says Sirivadhanabhakdi: “This project will bring Bangkok to the fore as an international city both economically and culturally, becoming an unparalleled lifestyle destination that will attract top-level business professionals, investors, as well as tourists, local and international alike.”
Thailand is the second largest economy in Southeast Asia, marking its fastest expansion since 2012, and was the most visited country in Southeast Asia in the first six months of 2024. The country is renowned for its rich culture, warm hospitality, amazing cuisine and breathtaking landscapes. These unique features are why many choose Thailand as their second home.
With responsibility to help grow long-term residents, Thailand Privilege Card (TPC), a state-owned enterprise, is working relentlessly to improve its level of services and member offerings.
Manatase Annawat, President of Thailand Privilege Card
Manatase Annawat, President of TPC, says membership has grown to approximately 38,000 today, up from 20,000 members in 2022.
“Our target members are affluent travelers, investors, retirees, expats, digital nomads and others. They are from China, Japan, the U.S., U.K., Russia, Taiwan, Germany and France,” he notes.
TPC has four membership tiers, Gold, Platinum, Diamond and Reserve. Gold, the entry level tier, has a five-year visa validity and costs 900,000 baht (US$26,995). Reserve, the highest tier, has a 20-year validity with extension, costs 5 million baht (US$149,975), and is available by invitation.
TPC’s Uniqueness
While there are various visa programs available, Annawat believes TPC has what it takes to meet, and exceed, the demand of members.
TPC members can enjoy its well-known “signature airport services”, provided by professional staff. The Elite Personal Assistant (EPA) welcomes members at the gate at Suvarnabhumi and Phuket airports.
EPAs help members access TPC premium services i.e. fast track immigration lanes, lounge, pick-up and transfers. When TPC members depart Thailand, the EPA ensures a smooth check-in, so clients begin their journey stress free.
Having access to fast track lanes can significantly reduce waiting time. With this service a passenger can spend less than 30 minutes going through immigration in Suvarnabhumi Airport.
The signature airport services include VIP greetings facilitated by Elite Personal Assistants (EPAs), access to electro cars, fast track immigration, VIP lounge amenities and limousine services.
Packages include an exclusive offer for governmental concierge services to facilitate members throughout their stay. These services can include acquiring a visa, transferring stamps to new passport, stay extension, or opening a bank account.
“We ensure our members’ journeys are seamless and smooth. Hence, we have a 24-hour call center and concierge services for them,” Annawat says.
Improving Lifestyle Services
Annawat understands that providing a VIP-like experience for its members at the airport helps build a good first impression. The key for TPC’s success is to ensure the experience is consistent throughout the members’ stay.
One way to achieve this is to improve lifestyle services and offerings, which come in five categories: Stay, Travel, Leisure, Health and Well-being and Wealth. TPC members, depending on their membership tier, will receive points annually.
Points can be used for lifestyle services, including hotel accommodation, concert tickets, limousine services, spa and massage, movie tickets, access to golf courses, airport lounge, co-working space and medical check-up.
Annawat and his team have been improving TPC’s lifestyle services. “Today, we are working with close to 400 lifestyle vendors across all categories. A year ago, we had about 100 vendors, so we raised the bar to ensure all foreigners who chose Thailand as their second home can receive those privileges during their stay as residents. We’re also seeking General Sales & Service Agents to expand our reach to potential members around the world.”
Expansion Plans
Annawat aims to grow TPC’s membership to 40,000 by the end of 2024. One segment he hopes to grow is digital nomads, which is poised to grow to 60 million globally by 2030, from about 40 million in 2023. “We see the trend of people work from anywhere in the world, and their world has become borderless. The trend of people relocating from their home country is increasing,” he says.
Annawat believes TPC is only beginning to reach its full potential, and he is committed to providing more enhanced services.
“Thailand has a lot to offer. We want the high net worth people to live in Thailand for a long period because of effective infrastructure, sensitivity to LGBTQIA+, a multiculture friendly environment and Thai hospitality as DNA. We want them to come, to stay, to fall in love with Thailand and tell the world what an amazing country Thailand is.”
Amid rising climate threats, the need to reshape our cities and rethink urban planning has never been more critical. Without decisive action, some urban environments risk becoming unliveable in 10-20 years; collaboration across different disciplines and industries is critical as we reconsider how cities are designed, built and sustained for the future.
Today, up to 80% of buildings in mature cities will still be in use by 2050. Many of these structures were not designed to account for evolving climate risks, such as flooding and increased energy demands. These buildings need to evolve with the changing social needs of diverse urban populations or risk exacerbating inequality and social fragmentation.
As cities strive to meet a zero-carbon future, these buildings are at risk of becoming obsolete. While the challenges are significant, there exists the opportunity to positively reshape urban environments.
This presents an urgent call to action for stakeholders, including policymakers, capital owners, investors and developers.
“We find ourselves at a critical juncture, where today’s collective decisions will determine the liveability of our cities for decades to come,” says Wanshi Zheng, Group Chief Strategy and Sustainability Officer at Frasers Property.
Taking Action
The journey ahead may be complex, but with the right holistic considerations and collaborative eff orts, these challenges can be overcome. Forward-thinking developers are making progress toward creating more resilient cities by working in public-private partnerships to ensure investments go further—for profit and beyond.
According to research by JLL, one-third of commercial real estate leaders plan to transition away from less carbon-efficient spaces by 2025. Assets that address environmental and social factors are better positioned to retain their value and avoid the risks of depreciation or becoming stranded assets.
As a leading multinational real estate company that develops, manages and invests in a diverse portfolio across Asia-Pacific and Europe, Frasers Property has implemented strategies to contribute to the building of resilient, sustainable and vibrant cities. The company strives to integrate environmentally friendly practices and social responsibility across its entire value chain.
Frasers Property has set sustainability targets, committing to reduce its direct emissions, but also those generated by its stakeholders.
“At Frasers Property, our development capabilities in greenfield and brownfield projects are helping build successful cities of the future. We are committed to enhancing the quality of life for the communities we serve, fostering sustainable and vibrant environments where people can thrive,” says Zheng.
Leading Sustainable Urban Development
An effective way to ensure urban resilience is by integrating sustainable practices from the outset. New developments offer a unique opportunity to incorporate cutting-edge environmental and social sustainability strategies. By prioritizing sustainability at the projects’ inception, developers can effectively guard against climate events while minimizing capital expenditure otherwise spent on climate adaptation.
Frasers Property exemplifies this approach through various projects that integrate sustainability into the fabric of modern cities such as with One Bangkok. This sprawling 17-hectare development is set to become Bangkok’s first LEED for Neighborhood Development (LEED-ND) Platinum-certified district.
One Bangkok incorporates energy-efficient systems, extensive green spaces and advanced water management techniques, setting new benchmarks in sustainable living.
Artist’s impression of Bradmill Yarraville, Victoria, Australia
Revitalizing for a Sustainable Future
Retrofitting and adaptive reuse of existing properties are crucial strategies for reducing environmental impact that can also be considered in revitalizing cities.
Frasers Property’s transformation of Bradmill Yarraville in Victoria, Australia, exemplifies this approach. Once an industrial denim factory, the site sat unused for over 15 years after shuttering, serving as a playground for graffiti artists and underground raves before being earmarked for development into a dynamic, mixed-use community while retaining key elements of its heritage.
Structures on the site’s old boiler house will be preserved in recognition of its history, while some of its graffiti will be maintained and displayed in the development as a nod to its underground culture.
“We wanted to maintain a connection to Yarraville’s past by respecting the site’s historical significance, as we create a space that meets modern needs,” says Cameron Leggatt, CEO of Frasers Property Australia.
Artist’s impression of The Tube, Düsseldorf, Germany
Balancing Commercial Viability With Environmental Responsibility
When new construction is unavoidable, the focus should be on minimizing environmental impact. The demolition of The Tube, a former industrial site in Germany, to make way for a new industrial anLEd logistics park, serves as an example.
Frasers Property ensured a sustainable demolition process by segregating and repurposing construction waste, recycling up to 70,000 tonnes of building material. It collaborated with the German Sustainable Building Council (DGNB) to pilot and test indicators that would form the basis for the first-ever Gold certification standard for a climate-friendly demolition of an industrial site. This demonstrates that even in challenging situations, environmental responsibility can be maintained alongside commercial objectives.
Creating Inclusive, Flexible Urban Spaces
The built environment has long shaped the way people live, but in recent years, there’s been growing recognition of its potential as a powerful force for positive social change.
Industry leaders have a unique responsibility—and opportunity—to enhance health and well-being, strengthen communities and culture, and promote social inclusion, all while delivering lasting economic benefits.
Frasers Property is dedicated to placemaking, creating inclusive and adaptable spaces that meet the needs of urban populations while shaping communities, cultures and connections within.
Midtown MacPark, New South Wales, Australia
Fraser Property’s Midtown MacPark in Sydney illustrates this commitment. The project, its partnership with state and federal governments and community housing provider Mission Australia Housing, seeks to tackle Australia’s housing shortage by providing affordable homes among its mix of some 3,300 apartments. The community is designed to be sustainable and inclusive, aiming to be 100% carbon neutral upon completion, with dedicated community facilities and resources for everyone.
In Singapore, Frasers Property, in partnership with national utilities distributor SP Group, has demonstrated how public-private partnerships can shape sustainable outcomes. Its Century Square and Tampines 1 malls are part of Singapore’s first brownfield Distributed District Cooling (DDC) network supplying centralized cooling to buildings within its network. The DDC is projected to reduce carbon emissions equivalent to taking 1,236 cars off the roads annually.
Collective Action Required
Frasers Property will continue leveraging its network, expertise and experience to navigate the challenges of its net zero journey. The transition to a low-carbon world cannot be achieved alone. The path to resilient, sustainable cities requires collaboration across the entire value chain.
Businesses, government bodies and communities must work together to create urban environments that are sustainable, thriving and inclusive, improving the quality of life for all who reside, work and play in them.
Thailand has come a long way and continues to develop and grow, transforming into a diverse economy. With world-class, homegrown brands encompassing industries such as prepared foods, shopping malls, hotels, fashion, transportation and much more, Thailand is working its way ever deeper into global consciousness.
Tourism and Travel: Key Drivers Tourism is targeted to grow by 7.5% in 2025 with revenues of 3.4 trillion baht (US$101.5 billion) from nearly 40 million visitors, making the now fully recovered tourism sector a major economic driver.
Under fresh government leadership, Tourism and Sports Minister Sorawong Thienthong is implementing a number of new ideas while building on past successes. A big focus for the 2024-2025 high season is the “Thailand Winter Festival,” which comprises celebrations such as Loy Krathong (floating small boats) in November. Also in November is the Vijit Chao Phraya, a highly impressive, illuminated sound and light show on the Chao Phraya River.
The events above, together with the Bangkok Marathon on December 1, the Wonderfruit Festival from December 12-16, and the big New Year’s Countdown nationwide, are just some of the highlights, plus beer gardens that open throughout the “winter” months, for punters to enjoy the cool evening weather.
The Ministry of Foreign Affairs (MFA) is doing its part to bring in more tourists, working visitors, retirees and investors. New visa policies will streamline the application for longer-term, purpose-dedicated visas, acknowledging the benefits of freer mobility and short- to medium-term residency in the country. The policies also increase the number of eligible countries to increase visitor diversity.
Visa types include the Destination Thailand Visa (DTV), which permits stays of up to 180 days per visit. This multi-entry visa is valid for five years and costs only 10,000 baht (US$300).
It is ideal for digital nomads and those who see Thailand as a long-term wellness and lifestyle residence. Additional visas catering to the needs of international students and investors are also being rolled out.
The MFA expects this liberalization to boost local industry, create jobs, drive sustainable growth, encourage investment, and spur the influx of foreign technology and expertise, generating innovation and economic growth as Thailand continues to establish itself as a global hub of commerce, travel, investment and transportation.
In line with the government’s plans, Thai Airways (THAI) has been expanding and improving all aspects of its service, conducting refits, ordering dozens of new aircraft, and increasing its global network and reach by adding new international destinations.
THAI has also upped its service game, with enhanced Royal First and Royal Silk classes, and improved food and entertainment across flight classes—all delivered with the famous Thai smile.
THAI aims to be even more highly regarded than ever before, encouraging and supporting tourism while enhancing the country’s prestige internationally. To this end, the airline has invested heavily in new aircraft, such as the Boeing 787-9 Dreamliner and the Airbus A350-900 models. And with the Thai-cofounded Star Alliance and its 26 global partners, THAI passengers can access every corner of the globe.
Central Pattana, a leading property developer, is a subsidiary of the Thai-founded multinational conglomerate with interests in retail, property development, brand management, hospitality, and food and beverage.
Central Pattana, in the course of building premier malls, hotels and office spaces, has established itself as the dominant player in its sector with a portfolio of over 40 large luxury retail and mixed-use properties. In so doing, it has become the preferred partner for international and local brands entering Thailand’s retail market through landmark shopping centers such as centralwOrld and Central Phuket, among others.
Meanwhile, Central Chidlom, a flagship of luxury retail under Central Retail, has unveiled its spectacular transformation—a seven-story store that sets a new benchmark for high-end shopping in the city. The reopening features captivating and elegant architecture, opulent global brands such as Gucci and Prada, and 60 seriously delicious food outlets, catering to all tastes and budgets.
Dubbed “The Store of Bangkok,” the new Central Chidlom is the future of luxury shopping, promising a shopping experience on par with the finest luxury malls anywhere on the globe.
Feeding the World Charoen Pokphand Foods (CP Foods) is a subsidiary of Thai conglomerate Charoen Pokphand Group (CP Group) and a leading player in the food and agro-industrial industries. The company’s product range span high-quality meats, premium seafood, and ready-to-eat meals. With operations in over 17 countries, CP Foods reaches billions of consumers across the world. As a matter of fact, the company’s products may be going even further; NASA astronauts will be eating CP Foods’ chicken dishes when they blast off into space next year—a testament to the safety standards, and universal appeal, of its products.
Despite its achievements and scale, the company has reaffirmed its commitment to sustainability through innovation in “green” objectives. These include numerous initiatives to drive cleaner and more efficient eco-friendly production, in particular, by leveraging artificial intelligence and automation. The company’s strategy can be described as “Sustainovation,” the principle of combining technology, science, and innovation to improve efficiency and reduce the environmental impact of its operations.
Sappe, another of Thailand’s innovators, is an unusual beverage company—smaller than the giants but with swift growth and enviable inventiveness. The company has developed a knack for keeping up with ever-evolving tastes—locally, regionally and beyond. This has led to international revenues more than tripling over the past eight years and a spot on Forbes Asia’s “Best Under A Billion” list that the company has held for three years running.
Sappe produces popular beverages that are marketed under brand names such as Sappe Beauti, B’lue, and Sappe Aloe Vera, among others.
The company’s flagship product, and also its best selling by far, is Mogu Mogu. Mogu Mogu broke new ground in 2001 when it emerged as a snack-in-a-beverage—a fruit juice laden with coconut jelly cubes—which customers embraced as a tasty and healthy treat. Mogu Mogu now sells in more than 100 countries, including the U.K. and France.
Map Ta Phut Industrial Estate, Rayong, THAILANDYuthasak Supasorn, Chairman of the IEAT board
As the second-largest economy in Southeast Asia, Thailand remains an attractive destination for global investors, including those looking to set up businesses within its well-equipped industrial zones.
One of the driving forces behind Thailand’s success in securing foreign direct investment is the Industrial Estate Authority of Thailand (IEAT), a state enterprise under the Ministry of Industry, which is responsible for creating and organizing industrial estates in a synergistic manner.
Ambitious Goal
According to IEAT, the value of investments in 2023 increased by about 202% compared to 2022, with total investments reaching approximately US$490 billion.
IEAT manages 68 industrial estates nationwide, housing 4,828 factories with an accumulated investment of 10.8 trillion baht (US$319.5 billion).
“These figures reflect the agency’s on going commitment to creating a conducive environment for investment and demonstrate the confidence that both domestic and international investors have in Thailand’s industrial estates,” says Yuthasak Supasorn, Chairman of the IEAT board.
Although IEAT’s achievements are commendable, Supasorn believes the agency can reach greater heights. “As we look forward, our goal of attracting 3.05 trillion baht (US$90.2 billion) annually over the next three years is ambitious but achievable,” he says. Supasorn expects 20% of these investments to come from the U.S., another 20% from Europe, and 10% from China.
Key Strategies
To achieve the 3.05 trillion baht (US$90.2 billion) annual goal, IEAT has put in place several key initiatives. First, it aims to expand and upgrade its existing industrial estates, and develop new industrial estates.
IEAT also works closely with domestic and international technology partners to develop and implement new technologies, such as artificial intelligence (AI), big data and the Internet of Things, to ensure that its industrial zones are able to support new technologies.
Furthermore, Supasorn says the government has a set of business- and investment-friendly policies in place, such as tax incentives and benefits, as well as streamlined regulatory requirements to attract investors.
“In recent years, we have seen growing interest from foreign investors in establishing operations in Thailand due to its strategic location in Asia and strong logistics connections,” he says.
IEAT the One-Stop Center
IEAT is the ideal partner for global investors looking to set up a manufacturing facility in Thailand. For a start, IEAT works like a one-stop center, helping investors from the initial stage, such as the application of necessary licenses and permits, to the final stage of commencement of operations.
By managing 68 industrial estates across Thailand, IEAT has a holistic view of the country’s industrial sector. Thanks to this advantage, IEAT is able to help business owners and global investors to identify the best location for their manufacturing facilities in order to maximize business synergy.
The agency also actively supports the participation of local communities in the management of industrial zones, ensuring that development is carried out in cooperation with local authorities and with strict adherence to laws. This promotes a harmonious relationship between industrial development and community growth.
Tech, Innovation and Sustainability
Supasorn says the agency’s strength lies in its focus on technology, innovation and sustainability. “We place significant importance on the development of technology and innovation within our industrial estates, with a particular focus on supporting the integration of digital technologies and smart solutions,” he says.
Today, IEAT’s industrial estates can support technologies like smart energy management systems, smart sensors and AI through a reliable broadband network.
As part of IEAT’s commitment to sustainability, it plans to launch several sustainability related projects this year. This includes ramping up its promotion of renewable energy by encouraging business owners in its industrial zones to adopt solar- or wind-generated energy. “Another major initiative is the carbon credit trade, which supports industrial estates in reducing greenhouse gas emissions,” Supasorn says.
“Through strategic measures, technological advancements and collaborative efforts, we aim to drive significant progress toward carbon neutrality and foster sustainable industrial development,” he adds.
Tanyapong Thamavaranukupt, Co-President of Ascend Money
Thailand’s first fintech unicorn Ascend Money Co., Ltd, having secured fresh funding of close to US$200 million recently, is laser-focused on growing its business to the next level by providing a wide range of financial services to the underserved and unserved segments.
Tanyapong Thamavaranukupt, Co-President of Ascend Money, the operator of TrueMoney, says the company has enjoyed tremendous growth since it was established more than 10 years ago.
More importantly, it has evolved from a digital wallet into a multi-service digital financial platform that empowers people and promotes financial inclusivity.
Humble Beginnings
Ascend Money’s journey to become Southeast Asia’s leading fintech platform started in 2013 as a unit of e-commerce firm Ascend Group, which is a spinoff from True Corp., one of Thailand’s top telecom operators. Today, Ascend Group operates as a subsidiary of conglomerate Charoen Pokphand Group Company (CP Group).
In its early days, Ascend Money’s core business was in payment processing, operating under the TrueMoney brand. At that time, the company found that avid gamers, who were mainly students and young adults, were having difficulty acquiring gaming credits.
“We saw the pain point they faced. They wanted to buy gaming credits during the wee hours, but there was nothing available online, and shops that sold these credits were closed,” says Thamavaranukupt. “So, we launched our first e-wallet app, allowing them to buy gaming credits using their prepaid credit cards.”
Ascend Money then started to expand TrueMoney’s payment use cases. It teamed up with convenience store chain 7-Eleven to enable customers to buy credits for mobile app store purchases.
On top of that, it continuously worked on improving the user experience of TrueMoney and, subsequently, evolved into a digital financial superapp—one that allows users to pay their utility and credit card bills, top up their mobile phone credits, and save and invest.
Thamavaranukupt says TrueMoney had only 200,000 monthly active users during its first year of operation. Today, it has about 20 million.
Despite the impressive growth, Thamavaranukupt believes the achievement is only the tip of the iceberg. “We want at least half of Thailand’s population, about 30 to 35 million, to use TrueMoney regularly within three years,” he says.
Achieving Unicorn Status
In 2021, Ascend Money raised US$150 million from a group of investors, including existing investors CP Group and China’s Ant Group, and new investor Bow Wave Capital Management, a U.S. investment firm. It was a major milestone for Ascend Money as it achieved the US$1.5 billion valuation as a result of the funding round, making it the first fintech company in Thailand to achieve unicorn status.
Thamavaranukupt says the company did not rest on its laurels and continued to develop and improve its suite of financial services for the underserved segment.
These efforts caught the eye of Mitsubishi UFJ Financial Group, Inc. (MUFG). The Tokyo-based financial group, through its subsidiary MUFG Bank, was the lead investor in a US$195 million funding round. Finnoventure Private Equity Trust 1, managed by Thailand’s KrungsriFinnovate Co., Ltd., was also an investor in this round.
These investments will help Ascend Money accelerate its plan to provide inclusive financial services for underserved consumers and micro, small and medium enterprises (MSMEs), fostering equitable economic growth and financial well-being in Thailand, Thamavaranukupt says.
“MUFG is a serious investor and having the company onboard raises the profile of Ascend Money. It has a good track record in investments in Southeast Asia. The dynamics between us and MUFG are good. They understand the region well and they understand our business,” he adds.
Serving the Underserved
While Ascend Money, through its TrueMoney app, has features that are catered to the masses and across different income groups, the company’s key strengths lie in promoting inclusivity and developing products to serve the underserved segments.
Although about 95% of Thais have bank accounts, Thamavaranukupt says, many do not have access to loan financing. “Only 5% to 7% of bank customers have their loan applications approved,” he states.
Most of the Thai adult population is underserved because many of them are self employed and do not have regular incomes. “This makes it challenging for traditional banks to evaluate their actual financial health, their ability to service loans and approve loan applications,” he says.
As part of Ascend Money’s mission to help address the needs of the underserved, Thamavaranukupt says the company started to expand from providing payment solutions to offering financial services as early as three years ago.
“There were two objectives for the decision. First, to serve the underserved. Second, since the profit margin in the payment business is very slim, we have to expand to other services in order to grow,” he explains.
Giving the Underserved Access to Financing
In 2016, Ascend Money launched Ascend Nano, a new business that provides micro credit and personal loan products to the underserved community.
Using state-of-the-art technology and alternative data, Ascend Nano helps customers and MSME owners gain access to loan financing. Ascend Nano is able to identify “good customers” using its revolutionary credit score software, which is now in its fourth version.
The company works with its partners to better understand customers’ behavior. “In this business, it is all about risk management. We examine their behavior when using mobile phones and mobile wallets, and use the data to determine their credit score and credit line,” Thamavaranukupt says.
The company also reduced its risks by providing customers with a small credit line, especially new customers. “If they have the capacity to repay the loan on time, we will be able to provide them with a bigger loan,” he explains.
He adds that while the credit lines may appear small, they can impact customers’ lives. “A majority of our customers need the money for emergencies, such as health issues or children’s education. They have the ability to repay the loan; it is just that they lack access.”
Today, about 78% of Ascend Nano’s customers are those who have either never received bank loan approvals or have had their loan applications rejected. “What we are doing here is new and revolutionary.
Our approach to credit is very different from the traditional players,” Thamavaranukupt points out.
Democratizing Wealth Products
Despite a population of over 70 million, Thailand has a relatively low investment penetration, with only 3 to 4 million Thais having investment accounts.
The low penetration rate also means that the lower-income group—which constitutes the underserved segment—does not have access to investment products. To provide the underserved with investment products, Ascend Money launched a mutual fund investment service on the TrueMoney app, enabling users to open investment accounts online. Users can browse various mutual fund options, including those that allow them to start investing with as little as 1 baht (US$0.029), offering an easy opportunity to learn through experience.
Another highlight investment product is gold saving. This service allows customers to buy gold for as low as 100 baht (US$2.93) via the TrueMoney app.
While gold investment may not be as “sexy” as stocks or mutual funds, Thamavaranukupt believes it is a product suited to the underserved segment. “Gold is something that many of us, across all income groups, understand well. For the low-income group, gold is typically their first form of investment. When they have excess cash, they buy gold.”
So far, this product has been well-received by customers. “We already have a few million users investing in gold. We are seeing growth in this segment.”
Besides mutual funds and gold investment, TrueMoney users are also able to invest in various assets, such as government bonds with tenures as short as three months. Nevertheless, Thamavaranukupt says there’s still a lot of work that needs to be done in this area, as there’s still a long way to go before hitting critical mass. “Investors’ awareness and education play a big role. Customers need to understand the importance of having long-term investments.”
Providing Peace of Mind
Another area that Ascend Money aims to address is insurance protection for the under served. According to Thamavaranukupt, many Thais understand the importance of having insurance coverage, but affordability is the main barrier. The average worker cannot afford annual premiums, which, in most cases, are required to be paid in a lump sum.
To make insurance more affordable for Thais, Ascend Money, via Ascend Assurance, has come up with “bite-sized insurance plans.”
“There are about 20 million motorcycles in Thailand, but most do not have insurance coverage, which typically costs around 3,000 baht (US$88) annually. The lower-income group cannot afford to pay this amount in one lump sum. So, we break it into a monthly premium of 250 baht (US$7), and it will be auto-deducted from their TrueMoney wallet,” Thamavaranukupt says.
Today, Ascend Money has one million customers buying insurance through its platform the company claims, and plans are underway to introduce more insurance products.
Strengthening Regional Presence
Seeing the growth potential of the Southeast Asia market, a region with a population of over 673 million, Ascend Money has been gradually expanding its presence across the region since 2016. While Ascend Money focuses on multiple products and business streams in Thailand, the company’s main focus in the overseas market is on TrueMoney.
Unlike in Thailand, where people can send money to one another using the TrueMoney app, such flexibility does not extend to all Southeast Asian countries due to regulatory reasons.
In some countries such as Cambodia, Indonesia, Myanmar, Philippines, Malaysia and Vietnam, TrueMoney users would need to go through an agent to perform domestic and cross-border money transfers.
Today, it has more than 88,000 agents in Southeast Asia, over 50 million users, and has processed payments of more than US$14 billion.
Over the long-term, Ascend Money’s game plan is to achieve synergy between its business in Thailand and across the region. “For example, we have the TrueMoney app in Cambodia. Cambodians can come to Thailand and make payments using their local TrueMoney app on our system, and vice versa,” Thamavaranukupt says.
He adds that plans are underway to ensure user experience is seamless across Southeast Asia.
Future Plans
What makes Ascend Money’s business model interesting is that each of its core products—payments, insurance, investments and micro loans—can synergize with one another. For example: A customer who owns gold via Ascend Wealth could one day use it as collateral to apply for a loan.
Thamavaranukupt notes there are similar plans in the pipeline. “Pawn broking is a big business in Thailand and it is an area we are exploring. We feel that we can digitize certain segments of the pawn business,” he says.
Nevertheless, Thamavaranukupt says it is important to remain focused on the company’s immediate goal—for TrueMoney to achieve 30 million monthly active users within the next three years.
“There are a few hurdles when it comes to the adoption curve. We have crossed the early adopter hurdle, and we are now on the verge of crossing the early majority hurdle. Having said that, it will be challenging, as people are used to making payments via the conventional method, or another digital platform,” he remarks. “We will have to continue to build and improve our platform, improve the stickiness and at the same time create digital awareness.”
He adds that there is still lots of room for growth across all business segments.
“For payments, we want to make TrueMoney an everyday payment app of choice. In terms of lending, we have spent the past two years working on the credit score model. I think we are good to go now, and we expect to grow faster in the next three years.”
Building Culture, Startup Mindset
Thamavaranukupt admits that having the right people and a committed team is crucial to Ascend Money’s success today, and in order to build a good team one needs to have a good company in place.
“In terms of building a culture, we set out four key values. First, we are committed to make a positive impact and to deliver beyond expectations. We focus on our mission, and we communicate this to everyone in the company,” Thamavaranukupt says.
The second value involves building a harmonious team. “We don’t want silos or boundaries. We respect clear communication. I believe good teamwork is important for a company’s success.”
At Ascend Money, curiosity is highly encouraged. “We want everyone to always be curious. We want them to be curious about their work, and how they can serve customers better.”
“Fourth, is to maintain the startup spirit. At Ascend Money, there is no hierarchy, we do not have many layers of management. Everyone can share their thoughts and discuss issues. I think this is very important,” Thamavaranukupt says.
He adds that by having the right culture in place, the company is able to reduce its employee turnover rate significantly. Five years ago, its turnover rate was 50% annually. “Today, most of our staff have been with us for more than five years.”
Constantly on its Toes
Although Ascend Money has built a strong foundation and company culture, and has grown into a leading digital finance player in Southeast Asia, Thamavaranukupt under stands that it is vital for him and his team to be constantly aware of the responsibilities they are shouldering.
“We have a very big platform,” he states. Therefore, the security of the platform, the stability and reliability of the platform are essential.”
Thamavaranukupt says the company invests heavily in technology and 55% of its employees are in tech-related roles. “We understand that in this business, the reputation we have built over the years can we have built over the years can disappear overnight if we are not careful.”
Ascend Money at a Glance
Ascend Money was established in 2013 as a unit of e-commerce firm Ascend Group, which is a spinoff from telecom firm True Corp. At that time, True Corp was 62.5% owned by Thai conglomerate Charoen Pokphand Group Company Limited (CP Group).
Today, Ascend Group operates as a subsidiary of CP Group.
Based in Bangkok, CP Group is Thailand’s largest private company controlled by the Chearavanont family, ranked No. 2 on the 2024 Forbes list of Thailand’s 50 Richest, with a net worth of US$29 billion.
Ascend Money has Four Main Businesses
Payments Ascend Money’s payment business is operated under the brand TrueMoney. Started as a payment services provider for avid gamers who wanted to buy gaming credits, TrueMoney has grown and evolved into a multi-purpose mobile wallet. Users can use TrueMoney to pay utility bills, invest in mutual funds, sign up for buy-now, pay-later schemes, and more.
Lending The lending business is operated under the company called Ascend Nano. It provides nano finance and personal loan products to the underserved who need flexibility in order to grow.
Investment Operated under the company Ascend Wealth, it gives low-income communities and young adults access to investment products. For example, customers can buy gold for as low as 100 baht (US$2.93).
Insurance The insurance business is operated by Ascend Assurance. It is the newest product line offered by Ascend Money.
Future Plans