Cultural diversity to challenge Asean-based investors
Winning the support of local staff and adapting to cultural diversity are the challenges for Southeast Asian investors in Asean as they strive to compete with rivals from outside the region that swarm into this fast-growing destination, said Kan Trakulhoo
Speaking during the Asean Business Forum 2012 held by the Thailand Management Association (TMA), Kan said Southeast Asia would be attractive for investors worldwide once the region implements the Asean Economic Community (AEC) in 2015. Investors that a few years ago entered booming countries such as China and India will eye Asean as the next locations for their business.
“Currently, we [investors based in Southeast Asian countries] are competing among ourselves. We have to do a good job preparing ourselves to compete with investors from outside the region. I don’t think most of us are ready for the AEC. So we have to work hard,” he said.
Kan said cultural diversity was still a challenge for companies sending their staff to work in other Southeast Asian countries. They have to learn the history and background of countries where they do business to avoid misunderstandings.
Another challenge is to win the engagement of local staff, as cross-cultural diversity may be the main difficulty for doing business outside the home countries.
Kan added that the mindset of companies had to be changed as well. Whatever business SCG, for example, engages in will have to benefit customers as a priority, followed by its employees and other stakeholders, including shareholders.
“We don’t state shareholders separately because we can’t think of only maximising benefits to our shareholders as in the past. We have to benefit all stakeholders, which also include the communities in which we have businesses,” he said.
Tevin Vongvanich, chief financial officer of PTT and chairman of the TMA, said that to be successful in Asean, leaders of corporations had to be able to win support from local staff, clients and other stakeholders.
“The leaders have to be able to earn trust and respect from their staff and clients, otherwise it will be difficult for them to be successful,” he said.
Stefano Poli, chairman of the EU-Asean Business Council, said he was concerned about the lack of common standards among Asean members on how to run businesses. He also called for more transparency in regulations governing businesses.
