Lessons before the AEC upheaval hits Asean

During Thursday’s “Creative Talk Show” at the Centara Grand Hotel, Kasikornbank big boss Banthoon Lamsam said, half tongue-in-cheek, that he was not quite sure if frequent seminars or conferences on the Asean Economic Community would make people smarter on the subject. His talk partner, Nation Multimedia Group chairman Suthichai Yoon agreed, and they both went on to discuss whether the driving principles of the late Steve Jobs could be applied by nervous regional businesses holding their breath for the eventual crumbling of tax walls in the Association of Southeast Asian Nations.

The talk show followed a seminar held jointly by Banthoon’s bank and NMG’s Krungthep Turakij newspaper. The forum ironically endorsed Banthoon’s concern that, despite a flood of conferences and seminars on the AEC, affected countries or their people remain anxious at best – or clueless at worst – when it comes to the regional economic upheaval due to occur in 2015. What would Steve Jobs have advised them? According to Banthoon and Suthichai, the keys to the Apple founder’s success could also be applied by businesses looking at the AEC challenge with apprehension.

The talk-show hosts reminded the audience, the majority of whom were from the business sector, that they must know their strengths so they can focus their energy and thus manage to come up with a winning formula for their products. The AEC is a big, all-encompassing stage, so Thais might be tempted to fight the war on many fronts. Things can look intimidating and promising at the same time, as a bigger market means potentially more customers or buyers but more battle-hardened competitors will also comprehend other factors.

Steve Jobs would have advised businesses to take a long, hard look at themselves and come up with a strategy that will suit or amplify their strengths. Cambodia may be doing that right now, as suggested by a trade adviser from the Cambodian Embassy who attended the seminar. According to him, if Cambodia can’t compete in making good products, why not try to bring those who can make better products to the country, which has the advantage of cheap labour and some logistical edges? This know-your-strength philosophy, of course, will require some sacrifices. Less competitive businesses might have to make way so the objective of having a real focus can be achieved.

Suthichai and Banthoon said Steve Jobs’ Apple became very focused over the past few years. In other words, Apple did not try to be what it couldn’t, and at the same time worked hard to bring out the best of its strength. How can that be applied to a country? It would be a little more complicated, but the fundamental thinking is the same. If a country’s strong point is agriculture, for example, it shouldn’t try to compete as an electronics manufacturing player, although some local businesses in the latter category risk being swept away in the AEC era.

Once you know your strength, the next step is to find out how to use it to “simplify” your products or learn to “leapfrog” when you fall behind. If tourism is a country’s strong point, its “customers” must not be made to feel difficulties when using its service. Focused energy also allows people to jump like a frog if the situation requires.

Time will fly and 2015 will be upon us all of a sudden. Thailand has been in a peculiar situation. The country is a bit of everything, although agriculture remains its key strength. If Steve Jobs’ principles are actually a success formula, maybe Myanmar is more blessed than us. Decades of being virtually shut down from the outside world have at least one benefit. Myanmar is not as economically diversified and that could mean it’s easier for the country to know its real strength. 

It may take both bravery and paranoia to survive the imminent paradigm shift. Both Suthichai and Banthoon acknowledged that there’s no sure-fire recipe for success. Suthichai, however, showed the audience the different fates of two frogs. One is thrown into boiling water and immediately jumps out of it in scalding pain. The other is put in a pot where water temperature is increased very slowly but constantly. Basking in the initial warmth of the water, the second frog only knows that it’s being boiled when it’s too late.