Message from the Chairman
Profit of your company increased by 7.9% to Baht 91.854 million in 2018 as occupancy of the document warehouse continued to increase and expenses of the water front dock and warehouses declined. Thailand’s economy improved. GDP grew by a little more than 4% because of increase in tourism and exports although government investment and spending missed their targets, while income disparity increased similar to many countries. The expectation for 2019 is GDP to grow around 4% because of uncertain outlook for exports. Tourism could also miss target because unhealthy impressions from air pollutants at the end of 2018. The strong baht could further reduce exports, tourists and constrain the economy.
Infrastructure needs also continue to restrain and threaten future growth. Airport and seaports are straining at capacity; more cities are needed outside of Bangkok to spread wealth and improve quality of life both in Bangkok and the new urban centers. Management of government and education services are shackled by wrong management thinking and systems. Almost every new government tries to do more consequently it creates more bureaucratic confusion and budgetary deficits. Instead they should identify the projects that are no longer relevant or successful and stop them. Then they will have more money and can focus. By shifting resources from none productive sector to productive projects income and GDP will increase. The new Thai government, expected to be formed by May after a general election at the end of March is, unfortunately, likely to focus on finding quick new spending projects instead.
The world is going through a period of rapid changes. Digitalization has allowed us to see more, learn more and to do more at very low costs. New businesses are created and old ones disrupted. New management system, such as Lean, agile, scrum and OKRs have also helped these new businesses, such as Intel, Amazon, Google and so on to quickly become the new global giants. Disruption may not only come from existing competitors but from everywhere.
For Krungthep Sophon we will have to be closer to our customers, to know their needs and their values; to anticipate their business plans and to response quickly to meet their need and get out of doing things that they will not want; to simplify and digitalize our processes and system so that we remain competitive; to stay curious, to learn and to develop ourselves so that we remain relevant; to build great team works and trusts not only among our staffs but also with our customers, vendors and stakeholders.
Our business is likely to be disrupted by digital technology such as cloud storage and changes in legal needs to store original paper documents so we will have to be increasingly nimble.
The board have recommended an increase in dividend of one baht to nine baht as we have spare cash as we ponder on prudent investment opportunities.
(Mr.Chote Sophonpanich )