What is happening to the future of Thailand in an era where we hear the term “Thailand 4.0” spreading across all contexts and industries? The gathering of three top figures from three key sectors of Thailand on the stage of the seminar “TREA TALKS REAL ESTATE 2017,” organized by the Thai Real Estate Association in collaboration with TERRA BKK and numerous business partners, will profoundly reveal the future of Thailand in the context of 4.0 and encourage Thai people to step out of the “thought trap” before innovation changes our lives forever.

Decoding the DNA of “Khon Kaen Urban Development” as a Model of the Smart City Concept

The new urban planning policy of “Khon Kaen” has become a media sensation since January 2015, serving as a guideline for systematic urban development. A group of 20 businesspeople in Khon Kaen came together to establish the KKTT (Khon Kaen Think Tank) joint venture to study transportation systems and sustainably address Khon Kaen's traffic crisis.

Suradech Thaveesangskulthai, CEO of Ch. Thavee Public Company Limited, one of the co-founders of Khon Kaen Urban Development Co., Ltd., peeled back the layers of the term “thought trap” and decoded the DNA of the success of the “Khon Kaen Model,” transforming the old perceptions associated with this term into a creative name that enhances Khon Kaen's image as a successful urban development model in Thailand, driven by key components as follows:

  • To discuss the “sustainability” of Thailand's development and the notion that “we will not leave anyone behind,” we must start by asking ourselves whether we truly resonate with these words. Do we see everyone as equals and treat them as such? Today, many Thais are trapped in these “thought traps” due to a lack of sacrifice, as we often believe it is not our duty to take action, waiting instead for the government to provide all conveniences for us.
  • Khon Kaen Urban Development thus began by breaking free from these thought traps through changing the mindset of the citizens, consisting of three main pillars: fostering dialogue, reducing ego, and encouraging sacrifice. Most importantly, there must be the “courage” to break free from the confines of fear to do good for the community and rise to develop the city with the driving force of Khon Kaen residents.
  • The foundation of these three pillars will help ensure sustainable urban growth when citizens recognize the value of development, understand the importance of participation, and unite to transform the city positively. We will create a “Smart City” or “Khon Kaen Model” that is tangible and we are committed to making this concept a model for other provinces to adapt for their urban development in the future.
  • One aspect of developing Khon Kaen as a Smart City in real estate is designing construction with public transport systems in mind, such as creating cities with parking facilities, rather than constructing cities focused solely on people without considering parking, which could adversely impact traffic broadly. Khon Kaen is thus establishing a light rail system for sustainable urban travel.
  • Finally, if we want to rise to change Thailand, we should start with our dreams and make them a reality. It is time for us to take action for Thailand, as our dreams have propelled the Khon Kaen urban development model significantly forward, especially the light rail project under private investment, expected to be operational by 2020, making Khon Kaen the first province in Thailand to have a light rail service outside of Bangkok.

It’s time to unlock our minds and embrace innovation for the 4.0 era

Parin Panitphak, Managing Director of CLSA Securities, an expert in finance and investment and a board member of the Stock Exchange of Thailand, spoke about the “innovation” that is increasingly influencing our way of life.

  • Thailand is growing by introducing service innovations that add value to products and industries. At the same time, it has led to social disparities because we remain trapped in thought traps, such as fixation on GDP or KPI. We work under the satisfaction of our superiors without daring to propose ideas as subordinates, even though our superiors might be open to listening and supporting new concepts.
  • Currently, many companies are incorporating innovations to develop their organizations, including the real estate industry, which is utilizing technology and innovative services to enhance consumer convenience, as seen in the “SEC FinTech Day 2017” competition where Blockchain, a world-changing financial innovation, won. This program allows people to trade stocks without going through the stock exchange, clearly indicating that the world has entered a tangible era of innovation.
  • While Thailand supports startups, in reality, some startups face funding obstacles due to conditions imposed by banks, resulting in a chain reaction leading to reduced employment rates. Therefore, as we begin to support, we must return to prioritize innovation and operational processes to ensure agility in starting businesses and to be more open to innovations from abroad.

Area-Based Innovation: Transforming Cities and Revamping 10 Famous Districts in Thailand

In addition to “innovation” rapidly influencing urban lifestyles, it is now set to transform 10 famous districts in Thailand through a network connecting important locations and various commercial areas into a unified zone, facilitating the promotion of innovations that meet the needs of consumers and various industries. In this regard, Dr. Panuchart Chairat, Director of the National Innovation Agency (NIA) provided insights:

  • In the future, “innovation” will be applied to services and people's feelings, becoming a basic service (Service Based) that will fundamentally change our way of thinking, as it creates value in the thoughts and feelings consumers have towards those services. This form of innovation is intangible.
  • Although there are currently “Smart Cities” like Khon Kaen, Phuket, and Chiang Mai rapidly developing, when viewed from a broader perspective, these are just small points on the map of Thailand, lacking interconnected development. The government thus seeks to connect these developments by attracting foreign investment and infrastructure, such as creating innovation districts (Area-Based Innovation).
  • Area-Based Innovation begins with urban planning for 10 famous districts in Thailand, which will be developed by the end of this year, such as the “Yothin” district, which has the highest density of hospitals in Thailand, where we will create a medical innovation district, the Khlong San district with educational institutions and urban development, and the Kluai Nam Thai district featuring New Media, Art Complex, Manufacturing, and Urban.

  • When looking at the big picture, we can see the efforts to connect the small points of various important districts in Thailand together, not just Bangkok. For instance, connecting the economic and tourism zones in the eastern region such as Bang Saen, Si Racha, Pattaya, and U-Tapao, as well as supporting local people to become “Innovators” who participate in urban development together by supporting startup projects or SMEs. Most importantly, those who live or do business in those districts must change their mindset and move forward together.

Information from the TREA TALKS REAL ESTATE 2017 event on June 29, 2017

Article by: TerraBKK Knowledge Base

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