Historically, 2014 will go down as another disappointing year for most, as the Thai economy continued to suffer amid political uncertainty, policy questions and weak global growth.
In arguably the strangest fad to pass quickly through Thailand, thousands joined the ice bucket challenge to raise money for worthy causes. (Photo by Wisit Thamngern)
Business leaders can look back at the year as another transition period, what with the military coup in May, the formation of the Prayut Chan-o-cha government in August and the imminent launch of the Asean Economic Community late next year.
Yet not every headline was filled with sober pronouncements or grave consequences. Here the Bangkok Post recaps some of the most talked-about business stories that made the front page over the past 12 months.
Digital economy
One of the most-highlighted reform plans aggressively pursued and publicised by the Prayut Chan-o-cha government was the idea to digitise the economy.
In fact, the concept of a digital economy is nothing new and was brought up by previous governments. But efforts in implementing it were insufficient and piecemeal, so the current initiative has inevitably caught the public's attention.
According to economists and academics, Thailand is seriously in need of digitisation to remain competitive in a global arena that has already entered the digital era.
But such a huge mission is not a walk in the park and involves massive investment in infrastructure development and changing the mindset of both the public and private sectors.
Experts say the latter is a tough task for an interim government with such a brief administrative period. Many worry the entire plan will turn out to be just a ministry name change or sweet propaganda.
Information and Communication Technology (ICT) Minister Pornchai Rujiprapa believes a major hindrance to digitisation has been the lack of unity of command and direction among ministries, departments and agencies.
As a resolution, the government recently set up a working group comprising eight IT experts and chaired by Deputy Prime Minister MR Pridiyathorn Devakula. It has also set up a national digital economy committee chaired by Gen Prayut aimed at creating unity of command and direction. A proposal has been made to change the ICT Ministry's name to the Digital Economy and Society Ministry.
The government expects its plan to achieve the ultimate goal of boosting the overall economy, tripling the country's GDP per capita and lifting Thailand out of the middle-income trap.
Ice bucket challenge
It comes as no surprise that the ice bucket challenge was one of the most talked-about fads in the local business sector in 2014, receiving much media attention.
The craze, which went viral on social media in July and August, involved dumping a bucket of icy water on someone's head to promote awareness of amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig's disease, and encourage donations to fund research.
Participants had a bucket of ice water poured over their heads, then nominated others to do the same. In Thailand, many took part and gave to the ALS Association, although some individuals opted to donate to other local foundations.
The most talked-about business leaders taking the challenge included Bangkok Bank president Chartsiri Sophonpanich, Kasikornbank chairman and chief executive Banthoon Lamsam and True Corporation president Suphachai Chearavanont.
Pichai Chuensuksawadi, editor-in-chief of Post Publishing Plc and editor of the Bangkok Post, even accepted the Thai variation on the challenge issued by Mr Banthoon — the iced holy-water bucket, containing scented water.
Despite the ice bucket challenge's marketing success, some critics argued the ease of repeating the challenge's spiel did not raise awareness of what the disease entailed or who it affected.
World Cup crisis
Thais waited for the kick-off of the 2014 Fifa World Cup in June with the hope that football would at least bring joy after months of tension from political unrest.
But no one guessed the world's most important football tournament, held every four years, would turn into a dramatic conflict between the National Broadcasting and Telecommunications Commission (NBTC) and RS Plc, the broadcast rights holder for the tournament.
The World Cup saga began with the NBTC wishing to apply the must-have rule and ordering RS to air all 64 games live on free TV. But RS insisted it would air only 22 matches on two channels.
RS took the case to court and finally won. The Supreme Administrative Court reasoned that RS got the broadcast rights several years before the must-have rule took effect.
The junta intervened by demanding RS air all matches on terrestrial free TV as part of its plan to "return happiness to Thais". The NBTC agreed to compensate RS 427 million baht in exchange for the live broadcast of all 64 matches.
The conflict seemed to end happily. But many academics said the court ruling and the must-have rule would dampen the credibility of Thai broadcasters bidding on broadcast rights for major sporting events.
Foreign business angst
In November, reports circulated of possible changes to the Foreign Business Act (FBA), raising alarm among foreign chambers of commerce and embassies.
The proposed revision would redefine the term "foreign" and affect voting rights as well as the proportion of shareholdings, capital and management control.
The FBA now stipulates that Thai nationals must hold more than 50% of the shares in a joint venture for it to qualify as a local company. Foreigners are allowed to form the majority of the board of directors.
The speculation was given further credence when Mitsugu Saito, Japan's deputy envoy, voiced concern that the amendment would affect 99% of Japanese companies in the service sector here.
The foreign community drew a parallel with the previous military government's capital control measures.
This time, the Commerce Ministry held two public hearings on the proposed amendment with representatives from foreign chambers of commerce, academics and lawyers.
The Commerce Ministry assured foreign investors that amendments to the FBA would involve only investment promotion, simplifying business procedures and facilitating trade and investment.
Prime Minister Prayut Chan-o-cha soothed the situation, saying the planned amendment to the FBA had been shelved.
"The FBA will be left untouched for now, and any potential future changes will be for the better," he told a luncheon organised by the Joint Foreign Chambers of Commerce in Thailand.
Uber outlawed
The advent of a new taxi service offered by California-based Uber Technologies Inc has become the talk of the town for its impressive but illegal service.
Uber, creator of the GPS-based smartphone app, provides an alternative transport option for city dwellers fed up with the poor quality of traditional taxi service, substandard vehicle conditions and safety concerns, not to mention the risk of being overcharged.
Launched in Bangkok and Phuket in April, Uber's on-demand cab service has received a good response, particularly among social network and smartphone users.
Many Uber users say they enjoy the premium service with newer, cleaner cars and the easier mode of app-based communication. In some cities abroad, Uber provides service using only Mercedes-Benz and BMW vehicles.
The new service has prompted competition in the taxi industry, which obviously benefits consumers. But the Land Transport Department ruled the company was violating the Motor Vehicle Act, as Uber drivers did not hold a commercial driver's licence and their cabs were not registered for public use as required by law.
The department has warned consumers not to use Uber's cab service and demanded the company stop providing service via non-commercial registered cars. To date, 10 Uber drivers have been arrested and fined 2,000 baht each.
Paiboon Amonpinyokeat, founder of P&P Law Firm in Bangkok, says Uber could legalise its service in Thailand by changing its business model to provide car rentals with a driver.
An Uber customer himself, Mr Paiboon enjoys the company's service and says competition from the newcomer will raise the quality of taxi services in Thailand.
Channel 3 revolt
Reports about Channel 3 facing a blackout in early October proved to be a shock for TV viewers.
A conflict between the broadcasting regulator and Channel 3 over the must-carry rule intensified and got out of hand.
The NBTC wanted to apply the amended must-carry rule and force Channel 3 to migrate its analogue content to the digital system like other operators, while BEC World Plc, operator of Channel 3, insisted on running the channel until its concession expiry in 2020.
The spat began after the regulator on Sept 8 ordered satellite and cable network operators to drop Channel 3 analogue from their platforms within 15 days of receiving the official order.
The order came after the must-carry rule was amended in February to encourage existing analogue channels to shift content to air digitally. Network operators must no longer air analogue channels that refuse to shift content to the digital platform.
If Channel 3 analogue refused to migrate to the digital system, it would face a blackout and be forced to seek a pay TV channel licence. This means its free TV status would end and advertising time would be halved to six minutes an hour.
But Channel 3 stood its ground, saying the changes would entail legal and tax complications and additional costs, while digital TV still had no proven viewer base.
Both parties negotiated several times but failed to reach an agreement. As the deadline neared, Channel 3 went to court to seek a legal solution.
The Central Administrative Court gave Channel 3 an injunction to delay the blackout deadline for 15 days and demanded the two parties seek a compromise.
Channel 3 agreed to do a simulcast and the NBTC allowed it to do so. BEC World uses Bangkok Entertainment Co to hold the Channel 3 analogue concession, while BEC-Multimedia Co, another subsidiary, runs three digital TV channels.
After the compromise, Channel 3's analogue content was shifted to air on Channel 33 HD. Viewers can watch Channel 3 on terrestrial TV, Channel 33 HD on the digital platform and Channel 43 on satellite and cable TV networks.
Bangkok Broadcasting and Television Co, the operator of Channel 7, recently filed a complaint with the National Anti-Corruption Commission accusing three broadcasting commissioners of abuse of power in their handling of the Channel 3 dispute.
Funds in jeopardy
The Finance Ministry's stance not to renew tax breaks for investment in long-term equity funds (LTFs) and retirement mutual funds (RMFs) after they lapse at the end of 2016 sparked confusion and an outcry from individual taxpayers and mutual fund companies.
The Revenue Department said high-income earners enjoyed the most benefit from the tax deductions, arguing some LTF investors held the units for slightly more than three calendar years — buying at year-end and redeeming early in the fifth year — which was not considered long-term investment.
But the Federation of Thai Capital Market Organizations countered that middle-income earners gained the most from the tax allowance, plus investments in LTFs and RMFs were channels for people to increase their savings in the long run.
Moreover, both funds have increased institutional investors' clout and helped to stabilise the stock market.
Taxpayers can deduct contributions of up to 15% of their personal income or 500,000 baht, whichever is lower, for investments in LTFs. They can also claim a tax deduction of up to 15% of their annual income for investments in RMFs, not exceeding 500,000 baht, including contributions to provident or pension funds.
Money invested in LTFs must be held for five years, while RMFs can only be redeemed when the investor is 55 or older.
LTFs and RMFs, initiated by the administration of ousted prime minister Thaksin Shinawatra and aimed at propping up the stock market at the time, have grown significantly since their roll-out in 2002.
Assets of overall LTFs had surged to 256 billion baht by the end of last month from a mere 5.63 billion in 2002, while those of RMFs jumped to 160 billion from 2.84 billion. As of Nov 30, LTFs accounted for 6.67% of the industry's assets and RMFs 41.6%.
Data from the Association of Investment Companies show that as of June 30, a total of 769,334 people had invested in LTFs in 981,362 accounts, while 330,942 were RMF unitholders with accounts numbering 505,104. In comparison, mutual fund holders totalled 2.35 million people with 4.04 million accounts.
After the outcry from taxpayers, the Revenue Department decided to renew tax privileges for investment in RMFs, while the renewal of LTFs also got the go-ahead with the tweaks of a longer lock-up period, probably to 10 years, and maximum tax-deductible investments.
A restaurant owner in Lat Krabang district paints a waiter’s face with Argentina’s colours before a World Cup match. SUKHUM PREECHAPANICH
NBTC commissioners attend a hearing of the Central Administrative Court during the dispute with Channel 3. PATIPAT JANTHONG