New UPS Thailand chief looks to start of AEC
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UPS Thailand sees strong potential for the logistics industry ahead of the full implementation of the Asean Economic Community at end of the year, with Thailand set to benefit from the trade integration, said the company's new managing director Boon Tiam
Tan said the formation of economic blocs like the AEC would benefit Thailand and the logistics sector because of fewer trade barriers and higher cross-border trade.
Tan was appointed managing director on May 1. He is responsible for all aspects of UPS Thailand’s business.
In a career spanning a decade at UPS, Tan has worked in auditing, treasury, finance and accounting at the company’s Asia-Pacific and China headquarters.
Before his current appointment, he was based in China as director of finance and accounting for UPS China.
Tan said statistics suggested global trade would grow by US$22 trillion (Bt738 trillion) in the next five years, and nearly half of that would be in Asia.
He said that in 2008 total trade in Asean was $458 billion and would be $608.6 billion this year – a rise of 25 per cent.
Thailand accounts for 15 per cent of the total trade value in Asean, he said.
Tan said Thailand enjoyed major competitive edges in Asean including its good trade relations with many countries, its high growth opportunities and its strategic location.
He said the Kingdom was also the second-largest economy in Asean after Indonesia, had strong fundamentals and connections, had a great pool of skilled labour with a good education, and had healthy foreign investment and a great infrastructure.
“Thailand’s strategic location makes it an important gateway for our customers and UPS. As the country shows signs of economic recovery, I am focused on strengthening our efforts to deliver more value to our customers by gaining a deeper understanding of their business pain points,” Tan said.
“Currently, more than a quarter of Thailand’s exports are intra-Asean. Along with the government’s effort on eliminating trade barriers and promoting exports expansion through recent approved infrastructure programmes and special economic zones, we are excited about the prospects ahead for our customers, particularly those in the automotive and high-tech industries,” he said.
Jim O’Gara, UPS president for South Asia, said that with intra-Asean trade demonstrating strong growth, UPS believed that a regional trade bloc like the AEC held many benefits for its customers in Thailand and the region.
“Tan brings with him a wealth of business experience that puts him in an ideal position to lead UPS Thailand in supporting our customers to capture the growth opportunities presented with the establishment of the AEC,” O’Gara said.
He said the company’s international business performance was very good, with 14-per-cent year-on-year growth in total profit in the first quarter.
Tan said: “For Thailand, we have a strong commitment to achieve long-term growth.”
UPS operates in other Asean markets and its network continues to grow.
It began operating in Myanmar last August through sea and air-transport services. Early this year, the company started providing an express delivery service from Myanmar.
Thailand is Myanmar’s second-largest trading partner and trade between the countries was worth $5.57 billion in 2014.
“In Thailand, we see an opportunity for border trade and will look for opportunities to provide more service in those areas when infrastructure such as roads and rail services is ready,” Tan said.
