Mall operators unveil Bt12-bn plan to create 'Siam Synergy'

Major property and retail business operators in the Siam area – MBK; Siam Piwat Co, the operator of Siam Paragon, Siam Center and Siam Discovery Center; and Siam Square Business Group – yesterday announced plans to consolidate their power and the seat of their operations.

Their ambition is to “propel the Siam district to become Thailand’s key strategic economic and commercial hub and one of the world’s most comprehensive and diverse lifestyle centres.”

The three major operators are also committed to invest more than Bt11.8 billion to improve facilities and new development in the district.

MBK alone would invest about Bt2 billion in the construction of a skywalk route from the Pathumwan intersection to Chula Soi 12 and Sasin Graduate Institute of Business Administration. Another Bt1 billion would be allocated to the internal renovation of MBK shopping mall.

Siam Discovery will invest about Bt4 billion in its major renovation to transform the shopping complex into a ‘hybrid retail’ mall.

Meanwhile, Siam Square, which is positioned itself as the ‘walking street’ at Siam district, will next year develop new hotel and office buildings in the area at a cost of between Bt3 billion and Bt4 billion.

The memorandum of understanding, named “Siam Synergy”, was signed yesterday by the three major operators to strengthen the alliance in the district. It included public and private sectors and affiliated agencies, and aimed to push forward various projects to propel the Siam district towards becoming Thailand’s key economic and commercial centre. 

Siam is visualised as the hub where trendy lifestyles, world-class shopping experience, art, and entertainment converge under the concept “The Metropolis of Diverse Modernity”. 

The signing ceremony was witnessed by Kobkarn Wattanavrangkul, Minister of Tourism and Sports, who presided over the ceremony.

Siam district occupies retail space of more than 1 million square metres and is occupied by some 4,200 retail shops. It attracts about 550,000 visitors a day of which 30 per cent are foreign tourists.

Chadathip Chutrakul, chief executive of Siam Piwat, said all Siam Synergy allies would join in the creation of advertising and public relations strategies for the district. They have planned collaborative projects to develop the district, including the improvement of the Sky Walk, the establishment of Siam as Bangkok’s art district, joint marketing activities among members and allies to provide a ‘superior’ experience through promotions to attract tourists and stimulate spending. They would also improve the levels of security.

Suvait Theeravachirakul, director and president of MBK, said that as the first step, the signing of the memorandum of understanding under the name Siam Synergy would boost the image of the Siam district as the urban centre where latest trends, world-class shopping, art, and entertainment converge.  

The principal objective of this partnership was to strengthen the entrepreneur network and enhance the competitive capacity of the district. This synergy would also help preserve and promote art and culture so that Siam could continue to shine as a most-preferred destination among both Thai and foreign travellers.

Boonsong Srisawangnet, vice president of Siam Square Business Group, said that based on the latest information, the Siam district has demonstrated continuous growth. It has very strong economic and commercial potential and can be considered one of Bangkok’s golden locations, comparable to major avenues in other countries such as the Ginza in Japan. 

The Siam district is considered a vital connecting hub for Bangkok, linking various mass-transit systems, including Bangkok’s most advanced and modern transportation. The synergy within the district will not only prepare it for the advent of the AEC – but also directly benefit the economic development of the country.

Kobkarn said the signing of the MoU served as the beginning of a major collaboration of the Siam Synergy allies. It demonstrated the power and commitment of the allies in the Siam district to become a major force in developing the tourism industry by propelling and fostering continuous growth of this district. 

“Entrepreneurs of large, medium, as well as small enterprises, along with public and private agencies, are the powerful force that has, for over 50 years, strengthened and nurtured the Siam district into a commercial hub at the heart of Bangkok. This district has generated tremendous revenues for tourism industry and presented an extraordinarily diverse range of products and services that satisfy every need.”