January 27, 2009
Agency targets 50 firms
Published: 27/01/2009 at 12:00 AM
Newspaper section: Business
The National Innovation Agency (NIA) expects 50 private companies to apply for funding support from the agency this year, said NIA director Supachai Lorlowhakarn. The state agency was set up to help turn new Thai technology into products by providing financial aid to firms looking to employ innovations in their businesses.
Dr Supachai said this year the agency will focus on green technology, with main targets in bio-business, eco-industry, design and solutions.
The NIA will also move forward this year in encouraging local business operators to rely on Thai, rather than foreign, innovations and technology.
''We want to ensure that there is no cost to companies in trialling Thai innovations, which should prevent investors sourcing technology from overseas,'' said Dr Supachai.
''Thais often believe in western ideas while overlooking themselves. This is one major problem that discourages our talented scientists. We need to change attitudes.''
To achieve its target of 50 applicants, NIA has initiated an innovation ambassador programme, in which 100 academics have been appointed to network between Thai scientists and investors.
He said the investment of 50 million baht in the programme would be justified by the resulting commercial applications. ''This move will help bolster the Thai economy. With our investment of 50 million, we expect to see a 15-fold return to the Thai economy of 750 million baht.
''This is coupled with a 400-million-baht investment from the private sector when the scientists and businessmen find their matches,'' Dr Supachai said.
One ambassador, Wichien Yongmanitchai, professor of microbiology at Kasetsart University, praised the scheme's conversion of scientists into middlemen as their connections can help match researchers with investors.
''As middlemen, and as researchers who own patents on technologies, we get licensing and loyalties. The investors get cheaper local technology. The Thai economy is boosted. It's a win-win situation,'' he said.
Dr Wichien is in charge of a clinical trial that has linked him with three companies researching markets for DHA, or docosahexaenoic acid. This is mainly found in saltwater fish and is important both in the development of children's brains and in reducing cholesterol.
''The product has much potential. The US now has a monopoly on DHA supply. They make Thai importers sign a clause preventing them from producing it. The research will provide local markets with a product that is half the price,'' he said.
http://www.bangkokpost.com/business/economics/10505/agency-targets-50-firms
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January 26, 2009
Banking on health
Local specialist firm answers growing demand for banking stem cells as range of treatment applications continues to expand
Published: 26/01/2009 at 12:00 AM
Newspaper section: Business
Last year, a 19-month-old Thai boy diagnosed with cerebral palsy became the first person in Asia with the condition to be treated successfully with his own stem cells.
The encouraging outcome might not have been possible unless a stem cell bank had foreseen the value of the medical technology.
Thai StemLife obtains most of its clients through upmarket private hospitals but it hopes to be able to broaden access to the service, says Dr Kostas Papadopoulos, chief operations officer. PATTANAPONG HIRUNARD
As the number of new medical applications grows, so does the business, according to Thai StemLife, the first company in Thailand to have started collecting umbilical cord blood stem cells It was responsible for the safekeeping of the boy's sample.
"The first two years we spent recovering our costs. Now, the company is running clearly at a profit," said Dr Kostas Papadopoulos, chief operations officer of Thai StemLife.
The boy, one of 69 cases of successful treatments using one's own stem cells globally, was one of 48 successful cases in 2008, up from seven in 2004.
Even though public stem-cell banks also exist, it is hard to find exact matches for clients, says Papadopoulos.
"The chances that another person would have matching stem cells are only one in 50,000 for a person of the same ethnicity, one in 100,000 between races, and with mixed races only one in 200,000 of finding a match," he said.
The chance of a sibling's stem cells matching is 25% but one's own stem cells are a 100% match, so stem cell banks foresee rapid growth in the future.
"Last year, we had a 25% increase in the amount of stem cells stored," he said. "For this year, it's possibly too early to say, but we may be expecting a 50% increase from last year as the technology for stem cell banking becomes more well-known to the public."
The business is also connected to the country's birth rate. Currently, the market size is 6,000 per year representing only around 1% of the country's births. However, with competitors seeking a share of the Thai market, it would appear that the market is set to grow.
In Singapore and Malaysia, stem cells are currently collected in 20% of births. In Malaysia, this represents a market size of 100,000 per year.
Thai StemLife hoped to fund expansion and new facility development by listing on the Stock Exchange of Thailand next year. It declined to give financial figures, but Dr Papadopoulos, its market share in umbilical cord banking was 90% in Thailand, and it is also the sole adult stem cell banking provider.
Competitors include Stem Cell for Life, Cryoviva, Cordlife and Thai Health Baby in the local market.
The company's main marketing channel is private hospitals, where 95% of its clients find its service. They include Bumrungrad, Samitivej, BNH, Bangkok, Phayathai, Vejthanee or Vibhavadi.
"About 70% of my patients opt to bank their cord blood at present," says Dr Poonsak Waikwamdee, chief medical officer at Sukhumvit Maternity Clinic. Many of his patients give birth at Bumrungrad, where around 30% of new mothers bank their cord blood.
The service is not cheap, at 40,000 baht for collection and 6,000 a year for 21 years for storage, or 130,000 in total. But the company is exploring ways to increase access. "I'm a huge proponent of equal access to health care," says Dr Papadopoulos. "At 6,000 baht per year, the service would be available to all."
The company also conducts clinical and epidemiological research, including an ongoing study on diabetic ulcers. There are three new studies - on heart disease under the auspices of the National Innovation Agency, Type 2 Diabetes with overseas investors, and of cerebral palsy, he said.
In the US alone, there are about 3,500 ongoing studies into the applications of adult, cord and blood stem cells.
Currently, stem cells can be used legitimately in bone marrow transplants to treat some 70 diseases, although there has been some controversy over hospitals offering unaccredited treatments.
http://www.bangkokpost.com/business/economics/10445/banking-on-health
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January 23, 2009
Good ideas hailed
Published: 23/01/2009 at 12:00 AM
Newspaper section: Business
INNOVATION: The Thai winners of the Asian Idea to Product (I2P) competition held last month in Bangkok will be heading to the United States for the global round of the competition.
The competition brings MBA students and lab researchers together to develop business plans for technical innovation. The Thai team will present its leptospirosis testing kit business plan at the University of Texas on Oct 30-31.
Leptospirosis, also known as Weil's disease, is normally transmitted from mice to humans, usually from contaminated water. According to the World Health Organisation, there are 10 or more infections per 100,000 people per year in the humid tropics.
"One reason people aren't testing for leptospirosis is because it takes too long, though it causes the deaths of hundreds of Thais per year," said Tanaphat Laohansit, a member of the team. "the new test kit will help shorten the time and process."
One distributor has already contacted the team expressing interest in the product. Currently in the clinical trial phase, the product could reach the market by the third quarter of this year if all goes well.
(Only in print edition)
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Thailand urged to join pact
Published: 23/01/2009 at 12:00 AM
Newspaper section: Business
Thailand is being encouraged to join the International Renewable Energy Agency (Irena) as one of the leading players in renewables in Southeast Asia, said Hanns Schumacher, the German Ambassador to Thailand.
Dr Schumacher said that Irena was being set up in collaboration with other European countries as a driving force in the international community to develop greener renewable energies to replace mainstream sources.
He said that more than 60 countries were now working together toward the organisation's founding, with tasks, objectives and structure already agreed upon.
"We hope that Thailand will sign the statute. It has been an active member in the preparation of Irena," said Dr Schumacher.
Energy Minister Wannarat Channukul said the country was committed to supporting the development of renewable energy such as solar energy and other forms.
A feasibility study on building a nuclear power plant is also ongoing.
Thailand is now working on the 15- year renewable energy development plan, which requires a budget for the Department of Alternative Energy Development and Efficiency of 15.6 billion baht through 2022.
Through price incentives, Thailand aims to increase the country's renewable energy share to 8% of all energy used in 2011 and reduce 42,000 tonnes of greenhouse gases emissions.
Dr Schumacher said that apart from Thailand, regional neighbours such as Indonesia, Vietnam, South Korea, and India will be signing on as members at Irena's inaugural conference to take place in Bonn, Germany next week.
"China has not signed," he added, "but we are currently in the process of convincing them."
Once established, Irena will provide advice on financial, technical and structural issues related to switching to renewable energy to member states as it hopes to see this as a scientific pool to which only committed members will have access.
http://www.bangkokpost.com/business/economics/10252/thailand-urged-to-join-pact
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PRG uses innovation to expand to nutrient rice
Published: 23/01/2009 at 12:00 AM
Newspaper section: Business
Patum Rice Mill and Granary (PRG), a SET-listed rice trader and exporter, is expanding from commodity-based to value-added products, focusing on nutrient rice, supported by the National Innovation Agency. A new subsidiary, Inno Food Co, has been set up by PRG with initial capital of five million baht to produce and distribute nutra-GABA (Gamma aminobutyric acid) rice.
The managing director of Inno Food, Somboon Thitinun, said the company obtained help from the NIA by matching it with Mahidol and Kasetsart universities to develop the new nutrient rice to serve a niche market.
Research shows that GABA can help reduce the risk of diseases such as diabetes and hypertension, Mr Somboon said.
He declined to disclose the investment cost but said the company expected a profit margin at least 10% on its sales per year.
Rut Subniran, the chairman of the PRG executive board, said earlier that the niche GABA rice product was projected to sell about 100 tonnes per year, a small amount when compared with the 100,000 tonnes Pathum sells.
Mr Somboon said the company's market survey showed that Thai people wanted more nutritional rice but it also had to taste good _ close to regular Hom Mali _ so GABA rice was developed to serve this market need.
The target market for the product is upper- and middle-income consumers who don't mind paying 200 baht per kilogramme or about eight to 10 times more than the price of conventional Hom Mali.
He is confident that the market response will be good as the company has joined with MBK Food Co, the distributor of the popular Mah Boon Krong rice brand, to help create a marketing strategy for GABA.
It was also allowed to use the MBK brand to help build brand awareness among local market.
''In spite of the economic downturn, I don't think Thai people will stop eating rice. As well, our rice is quite niche, we make it for people with health concerns and high purchasing power. I think our product has a bright prospect,'' Mr Somboon said.
He added that Inno Food also planned to produce new high-nutrient food and beverage products, particularly instant healthy foods and ready-to-eat meals.
PRG shares closed yesterday on the Stock Exchange at 33 baht, unchanged, in light trade worth 7,000 baht.
http://www.bangkokpost.com/business/economics/10254/prg-uses-innovation-to-expand-to-nutrient-rice
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January 06, 2009
Thai CEOs look on the dark side
The pessimism of Thai CEOs has reached record levels with global economic woes and local political instability, according to an international business report by Grant Thornton.
The survey across 36 economies found that the -63% despondency score of Thailand's business leaders was topped only by corporate sadsacks in Spain and Japan, with values of -65% and -85%, respectively. The survey was conducted in early December, right after the airport closures, when national gloom hit an all-time low.
Although the 2007 credit crisis failed to dent the sunny outlook of Thai CEOs, their optimism has since vanished. Over 2008 their mood plunged from +30% to -34%, and it is now hitting an all-time low, according to Peter Walker, partner of Grant Thornton business consulting in Thailand.
Along with the CEOs in 33 of the 36 economies surveyed, Thai bosses list fading consumer demand as far outweighing all their other worries.
Yet CEOs elsewhere often stayed positive despite this concern. Directors in Botswana, India, Brazil and the Philippines topped the chart with values over +50% as "emerging economies realise that it [the global slowdown] could offer real opportunities".
Thailand's neighbours, including Asean members and China, also shared a positive outlook.
Mature economies like the US (-34%) and the European Union (-38%) were overwhelmingly negative, while trading blocs with emerging economies like Latin America (+11%) and Asia Pacific (+3%) looked on the bright side.
Overall, CEOs around the world are at their bleakest since the survey was launched in 2003. Pessimists also outweighed optimists for the first time, resulting in an overall balance of -16%. The dubious honour of the biggest mood swing went to Hong Kong executives, whose confidence plummeted from +81% to -49%.
Mr Walker advises CEOs and politicians in Thailand to provide "strong and clear leadership". He suggested that politicians spur consumer spending and the economy with infrastructure investments, while CEOs should defend their businesses in the short term but develop strategies for the long term.
"Businesses that make smart moves now will emerge as the leaders of the future. In the not-so-distant future, the economy will recover and a new commercial environment will emerge, but it could look very different to the current one," he said.
http://www.bangkokpost.com/business/economics /9216/thai-ceos-look-on-the-dark-sidePublished: 6/01/2009 at 12:00 AM
Newspaper section: Business
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