June 2013—BROADSIGHT by

Broadgate Financial

June 2013—Issue 2

BROADSIGHT by

June 2013—BROADSIGHT by

Foreword

Dear Readers,

Welcome to our second issue of Broadsight, the monthly corporate magazine by the Broadgate

Financial Group. Having read through this month’s articles, one common theme occurred to me – Trust

and the importance of it. Upon reflection I’ve concluded trust can be obtained through the following

formula:

Trust = (Honesty + Openness) x Time = Transparency

So what does this mean? We all have our own way to build trust so I’m not saying what I have illustrated

is necessarily correct. However, it works for us here in Broadgate. I feel, personally, you can’t be truly

honest without being open.

Trust is something we grant to our employees automatically – we trust our employees to do the right

thing and we trust our clients to make the right decisions. If trust is broken, it can be potentially

damaging and irreparable. As I have learnt and what I try to instill is, trust is relatively easy to achieve

(following the above formula) however, the hardest part is to maintain it!

“If you don't have trust inside your company, then you can't transfer it to your customers.” -Roger

Staubach

On behalf of everyone at Broadgate and myself, our sincerest appreciation and support for your

continued readership.

Simon Osborne Vice-President

June 2013—BROADSIGHT by

All of us at Broadgate Financial are pleased to

present you the second issue of our Corporate

Magazine: BROADSIGHT. We wanted to make it clear, comfortable to read

and enjoyable. That’s why in each of the future

issues you will find the same guidelines with:

- The hottest news from the previous month

along with upcoming important issues

relating to the business world in ASEAN

and beyond ;

- A market report on the most important

aspects of last month’s financial news

provided by the Excelsior Worldwide Ltd

company;

- Industry news related to our services in

Plantations, Construction and Advisory ;

- A presentation of one new project running

at Broadgate Financial ;

- A Q&A specific to our three industries ;

- And finally a presentation of an Individual

Social Responsibility project run at

Broadgate Financial ;

We do hope you will enjoy this magazine as much

as we did compiling it. If you have any questions

or requests, please feel free to contact us at

clientservices@broadgatefinancial.com.

News Feed Industry News Plantations

Industry News Advisory

Industry News Construction

Project News Q&A

ISR Article on Corruption

Contact Information

In this issue of BROADSIGHT,

June 2013—BROADSIGHT by

News Feed Laos issues bonds in the Thai market

The Lao government will raise funds through the

Thai capital market for the first time by issuing

1.5 billion baht worth of bonds to institutional

investors on Thursday.

The three-year bonds will carry a coupon rate of

4.5%.

Thailand is the most advanced capital market in

the Mekong region and uses this strength to

foster development of neighbouring capital

markets.

NiwatKanjanaphoomin, president of the Thai

Bond Market Association, believes Laos will be

able to attract foreign investors to its

government bonds to be issued in the Thai

capital market.

http://www.bangkokpost.com/

Checking in for growth

Hilton Worldwide has set an ambitious target to open one new hotel a week in Asia in 2015

and make the region the group’s key player within the next few years.

The surge in Chinese travel is pushing hotel expansion throughout Asia, says MrRinck.

The company just celebrated the opening of its 100th property, the first DoubleTree by Hilton

Sukhumvit in central Bangkok. It now has 170 properties under development, 90% of them

managed by Hilton, said Martin Rinck, president for Asia Pacific of Hilton Worldwide.

Four years ago, Hilton Worldwide had just 46 hotels in Asia Pacific. Last year, it signed 55 new

deals to manage hotels in this region.

“We aim to open 25 hotels this year and 35 in 2014. And we target to open one hotel a week

in 2015. That means we will have 52 hotels under our brands in a year,” he said.

http://www.bangkokpost.com/

Suvarnabhumi Airport in Bangkok to undergo expansion

The expansion is aimed at accommodating increasing passenger numbers and air traffic, and is estimated to cost THB625-million ($21.1 million). The design for the Phase 2 expansion is expected to take another 10 months to complete with the construction contractor to be finalised in March 2014. An agreement has already been signed by the airport authorities with MAA 103 Group for the design of the four-storey, 216,000-square-metre terminal building which is a part of Phase 2. The building will be located next to 28 aircraft parking spots connecting the south-end tunnel with passenger-transport systems. The total cost of the project is estimated at THB72.2 billion baht ($243 million). The company also plans to incorporate smart cards and barcode technology to speed up its immigration services and reduce waiting times for passengers. Passengers will have an option of using their smart cards instead of passports which will take less time at immigration. The expansion is expected to be complete by 2016.

http://www.worldinteriordesignnetwork.com/

China calls on North Korea to enter nuclear talks A personal envoy to North Korea's leader indicated Kim Jung Un was open to restarting nuclear disarmament talks, a move that came as China's leader delivered a blunt message to Pyongyang to return to the negotiating table, Chinese state-run media reported Friday. Kim's personal envoy, who was on a three-day visit to China, hand-delivered a letter from Kim to President Xi Jinping at a meeting in Beijing before returning to North Korea on Friday, according to state media. While the contents of the letter were not released by the government, the envoy -- ChoeRyong-hae -- told Chinese officials that his country is willing to "take positive actions to solve problems through dialogue, "the state-run China Daily reported.

http://edition.cnn.com/

June 2013—BROADSIGHT by

News Feed – Market

News

Market Report

Excelsior Worldwide Limited is pleased to offer the following Market Commentary by

Sebastien Le Van, head of R&D, to share his thoughts on global economic developments,

market insights and other factors that may influence investment opportunities and

strategies.

Equity markets reached new highs in May but also

increased volatility as mixed comments from the US

Fed and Bank of Japan affected investor sentiment.

The uncertainties regarding the slowing down of US

stimulus and sufficient stimulus in Japan sent equity

markets lower in recent weeks. On the

macroeconomic front, the US economy continues its

recovery while Japan shows timid signs of

improvement. China’s economy is sputtering but is

all part of a bigger picture and Europe remains

stagnant. ASEAN economies again showed their

resilience to the global slowdown.

Key indicators in the US, such as housing and

employment have continued to improve, suggesting

the economy is gaining momentum. GDP came in

slightly lower than forecast at 2.4% rather than 2.5%

but it is not a major cause of concern. As stated

above markets responded negatively at hints that

drop from its highest point, after the Bank of

Japan sent mixed messages about its stimulus

intentions. For many observers the correction

was long overdue as the markets had risen too

high and too fast. Nevertheless, many investors

believe Japan is still a good investment as there

is room for more growth. On the economic data

front the numbers are improving with a 3.5%

growth in the first quarter.

Elsewhere, central banks have been busy cutting

interest rate in order to boost growth, notably

Australia which cut interest rates to a record low

2.75%. The Euro Zone is still not showing signs

of improvement with no growth since 2011 and

alarming unemployment rates. Voices have

been raised to reduce austerity and increase

stimulus measures. Finally, ASEAN economies

continue their expansion. Although some

countries like Thailand and Indonesia had lower

than expected growth, they are well over 5%.

Philippines posted growth of 7.8% knocking

the Fed might be tapering its stimulus efforts as

the economy improves and there is speculation

that it could start by the end of the year.

Chinese data on the other hand has been

sluggish as a whole. The government explains

these numbers by the fact that it is restructuring

its economy, shifting its dependence on export

and investment growth to a domestic

consumption and open economy. To achieve

this China is ready to tolerate weaker growth at

around 7% for a decade. The IMF which cut

China’s outlook to 7.75% says these decisive

reforms will put the country on a more

sustainable path.

In Japan, the equity markets which had shown

signs of overheating went into a correction, 10%

June 2013—BROADSIGHT by

China from pole position in Asia.

In the short term, markets should remain

volatile. Bourses have been running high

and any piece of negative news will be an

excuse for profit taking. There is

somewhat of an inverse relationship

between positive macroeconomic news

and market direction going on right now.

Good indicators which should boost

markets are viewed as a threat to the

stimulus programs, especially in the US.

Finally, further interest rate cuts across

the globe could be expected as global

inflation remains low which should give a

lift to respective markets.

We remain moderately positive for the

medium term. The announcements

regarding Fed stimulus will have to be

monitored closely. Any concrete sign of

tapering should bring about volatility in

the markets. However, this would also

mean that the US economy is back on

track and that can only be beneficial for

global growth. The same can be said

about Japan if they can get their economy

going. The OECD has estimated higher

global growth in 2014 if those two

countries continue to improve. Chinese

data also need to be watched as a major

drop in figures would be a cause of

concern. As for Europe, it is expected to

remain in a recession for another quarter,

so any good news would be welcomed.

In the long term we remain confident

markets will move forward.

Excelsior Worldwide Limited is an

independent, active investment

management firm specializing in Multi-

Manager, Multi-Asset class offshore

investment funds. The funds are domiciled

in Guernsey and Mauritius. For further

information on Excelsior funds please visit

their website; www.excelsiorfunds.net

The information set out herein has been obtained from various sources and is by way of information only. The Broadgate Financial Group and Excelsior

Worldwide Ltd can accept no liability of any sort in relation thereto and readers should obtain their own verification of any statement before making any

decision which may have any financial or other impact. Neither the information nor the opinions herein constitute, or are they to be construed as, an offer or a

solicitation of an offer to buy or sell investments.

June 2013—BROADSIGHT by

Economic Land Concessions in

Cambodia Agriculture has always been a major issue in Cambodia as it is for any country.

Twelve years ago the country needed to improve its agricultural performance

towards achieving self-sufficiency for food. However, neither the government nor

companies had the capital to develop agriculture. Moreover agriculture was

suffering from low productivity, inadequate infrastructure and high vulnerability

to the weather. The government decided to enact Economic Land Concessions.

What are Economic Land Concessions?

Economic Land Concessions (ELCs) were initiated in

1990 in Cambodia and legally formalized in 2001 by

the Cambodian Government. It is a long-term loan

of land in Cambodia in order to develop industrial

agriculture. ELCs cover a wide range of plantations,

livestock and building sites (for agricultural purpose

only). The size of lands may vary but don’t exceed

10,000 hectares per person (physical or legal). Since

2008, only the Ministry of Agriculture, Forestry and

Fisheries (MAFF) can legally grant ELCs. The MAFF is

also obliged to list on a logbook all the ELCs

(accessible on MAFF’s website).

and globalized corruption. Worst still we can

observe a drift from its original purpose. Indeed,

according to Global Witness (an NGO fighting

against natural resource related conflict) more

than 400,000 Cambodian people have been

evicted and 73% of arable land is leased to

foreign companies.

At Broadgate we give importance to these

humanitarian issues and consider them when we

help companies acquire land in Cambodia. Ethics

is not just a posture it is also a way to do

business. We value long partnership in order to

develop benefits for our clients along with the

country we help them to invest in.

Pierre-Louis Vouteau

What are the results?

More than ten years after the legal settlement of

the ELCs, findings are mixed: during this period

of time Cambodian growth has exceeded 8% per

annum largely due to the substantial gain of

efficiency in agriculture. Indeed, agriculture is

still the main employers of people in the country

and one of the largest contributors to GDP (37%

in 2012 according to the World Bank). This was

largely attributed to foreign direct investment.

However, agriculture still suffers from weather

change, the lack of infrastructure in the country

Industry News

Plantations

June 2013—BROADSIGHT by

independence against interference from external actors and the

research for economic prosperity and competitiveness in a

globalizing world. Motivated by the same desire to influence

international debates in front of the major powers, we can

extend the comparison to the currency. On March 1979, the EU

implemented the European Currency Unit, a basket of European

currency, which attempted to limit the fluctuations of currencies.

This ECU has been replaced in 1999 by the Euro.

In 2005, on the impulsion of Japan, an Asia Currency Unit was

created. It is the weighted average of ASEAN +3 (Japan, China

and Korea) +3 (Australia, New-Zealand and India). This has led to

a stabilization of each country’s currency, which is showed by Eiji

Ogawa and Junko Shimizu in their research for the Asian Bank

Development Institute.

Industry News

Advisory

The EU: an example

for ASEAN?

Since 1967, the ASEAN (Association of Southeast Asian Nations)

has established a supranational organization on the same basis as

the European Union (created in 1957). Five countries were at the

origins: Singapore, Indonesia, Malaysia, Thailand and Philippines.

Later Brunei, Viet Nam, Laos, Myanmar and Cambodia joined the

community composing nowadays of 10 countries. But at a time

when the European Union is experiencing a political and economic

identity crisis after the implementation of a common currency and

increased political integration, ASEAN is patiently building an

economical giant which will be a direct competitor to China and

India in the coming years. Indeed, by 2015 ASEAN aims to achieve

full economic integration creating a single market that will allow

the free flow of goods, services and capital (economic and human).

This is quite similar to the Schengen agreement of the EU in 1992.

With 10 countries compared to 27, ASEAN is trying to build the

same model of regionalisation with fewer countries and therefore

has a higher chance to succeed in the long-term.

Moreover, ASEAN and the EU have been built for the same

purpose. Thereby, ASEAN and the EU are at least comparable. We

will find the same hope for peace and security, the safeguarding of

national

June 2013—BROADSIGHT by

what happens in Europe and contextualizes borrowed concepts

such as the Asian Currency Unit, which has proven their

potential viability, even with several countries.

Attempting to forecast is always risky. Nevertheless, by observing

carefully recent events in the EU and ASEAN, a line is drawn and

it is not so obvious that the ASEAN will tend to become an Asian

EU. In fact it is nearly impossible to run an integrated area of too

many languages, cultures and religious diversity. The future of

ASEAN will mainly cover agreements on economic cooperation

because these do not exert politics and religion, but help

countries to remain close. An example in Asia is the tension

between Thailand and Malaysia. However, these two countries

are still doing business together. On the other hand, to be

credible as an entity on the international scene, they will have to

act together and in concert before taking a decision, something

that Europe failed to do (e.g: War in Iraq in 2003). However, even

with its failures, the EU will remain a model to follow. How is it

possible twelve years after the most deadly war in history that

enemy countries decide to unite to build one of the most

peaceful and wealthy regions in the world?

But even with so many similarities, EU and ASEAN are very different. It is just

pretence to try to look for other common points, their respective

compositions are opposite. While democracy is a prerequisite to enter the

EU (for example the entry of Spain, Portugal or Greece after dictatorship),

the ASEAN members have politically a lot less in common. Myanmar and

Singapore share little political similarity.

In terms of wealth this area is also a paradox, Singapore is one of the richest

countries in terms of GDP per persona ($60,900 for 2012 ranked as 6th)

while Cambodia and Laos (respectively: $2,400 ranked 184th $3000 ranked

184th) and are among the poorest countries in the world. Globally their

economic structure is totally different: ASEAN is mainly dependent on

exportation to grow, while gross domestic product in the EU is lead by

household consumption. With this context it would be quite impossible for

ASEAN to transpose the European rules and policies. That is why ASEAN

takes its time, observes

June 2013—BROADSIGHT by

ASEF Board of Governors meeting in Singapore, May 2012.

Thereby, both the EU and ASEAN understand that joining forces

will help to set up a different balance of power. This is a response

to the supremacy of US or the coming supremacy of China. These

organizations have a role to play among the nations.

In ASEAN, some countries have a particular role, for example

Singapore, the gateway to Asia for western countries, or

petroleum producing Brunei, a country that ensures a constant

supply of oil. But one has a more implicit role: the Kingdom of

Thailand. Indeed, Thailand is the heart of the ASEAN and the link

between the member countries. Being the founding member of

the Association of Southeast Asian Nations, Thailand has a

proactive role in the implementation of the unique market in

2015. With its central location in Southeast Asia, we can expect

Thailand to become a hub in this area of the world.

By 2015, companies based in Thailand will have an advantage of

being located in one of the biggest markets in the world.

The Broadgate Financial Group has understood this unique

situation as an opportunity to invest in. Firstly, by providing

expert advice in plantation development in Southeast Asia. Also

by diversifying its consultancy activities, resulting in being the

most diverse corporate consultancy firm in South East Asia.

“A new growth force is coming in Asia,”Changyong Rhee chef

economist of the Asian Development Bank (ADB) when talking

about ASEAN.

Pierre-Louis Vouteau

June 2013—BROADSIGHT by

Industry News

Construction

The city of Bangkok goes Green

The new Bangkok city plan, effective from May 15th 2013,

encourages the construction of “green” buildings. Whether you are

a private individual planning to have your new house built in

Thailand or a builder willing to take advantage of this brand new

law, this article might interest you!

The city of Bangkok has approved, earlier this month, the final draft of the new city plan

named “Bangkok, the Green City”. This project’s aim is to promote environment-friendly

buildings in line with the guidelines of the Thai Green Building Institute (TGBI). In order to

establish new standards in the construction industry, the TGBI came up with TREES - the

Thai’s Rating of Energy and Environment Sustainability – which assesses the “greenness” of

a building. It covers eight key construction and environmental factors: building

management, site and landscape, water conservation, energy and atmosphere, materials

and resources, indoor environmental quality, environmental protection and Green

innovation.

Each of these factors corresponds to a specific requisition from the cabinet like the waste-

water treatment system, reduction of CO2 released in the atmosphere, etc.

After submitting the building project to the TREES test, it will be attributed a score

depending on the mentioned criteria and representing the efficiency of the building in terms

of sustainability.

If a building fulfills those eight requirements, the developer will be

allowed to increase the floor-area ratios over and above the current

limits. The Floor Area Ratio (FAR) is the total surface of a building divided

by the total surface of the lot. It measures the density of an area. Even if

the reward can benefit the constructor, the average cost will be increased

by 20 to 30% in the short term. However, they achieve marked long-term

savings in the form of reduced energy costs.

Living in an eco-friendly house or building can also benefit a person in an

economical way like considerably reducing energy usage, saving water

and regulating temperature. This results in decreasing the cost of house

maintenance.

Developers will now have to compare the benefits from increasing floor-

area ratios with the higher construction costs before deciding whether

the green route is more profitable and feasible for a particular project.

We, at Broadgate Construction, can help you with our new green product:

LiteCast. Broadgate Construction is the exclusive global marketing partner

for Easy Panel™ Construction (EPC) which partially prefabricated

construction material using sandwich panel technology. LiteCast is a

lightweight alternative to precast concrete panels and has been tested,

certified and patented in Thailand.

If you want more information, please contact us directly onour website.

Juliette Vidailhet & Mathieu Testa

June 2013—BROADSIGHT by

Project News

LiteCast

Consequently to the new Bangkok “green” city plan

covered in the previous article, it appears that the

construction industry will be strongly affected in the

future. Let us introduce the LiteCast panels technology,

Broadgate’s solution to match the new eco-standards

promoted by the Thai Green Building Institute.

LiteCast is a partially prefabricated construction material using sandwich

panel technology. It consists in a 3D high tensile steel wire and fire retardant

expanded polystyrene (EPS) embedded in concrete. As such, it is a lightweight

alternative to precast concrete panels.

What are the advantages of LiteCast over precast concrete panels? First, the

weight: approximately 50% lighter than standard precast concrete panels. It

enables a faster construction time as well as a costs reduction onsite: a

smaller crane can be used to handle LiteCast, and for a shorter amount of

time. Logistics also works out cheaper given the product’s lightweight.

Insulation: the polystyrene core and double layer concrete enable better

noise and thermal insulation properties. An efficient conservation of inside

temperature consequently reduces usage of air conditioning, allowing energy

(and therefore money) savings.

•

Finally, the speed. Thanks to a reduced mass of concrete, LiteCast’s curing time is

significantly shortened. Delivery time can thus be positively affected. Moreover, less

storage space will be required in the factory.

The Minerva project consists of a major property development project requested by

a large, family owned, construction conglomerate in Thailand. The 3D-sandwich

technology has been used for many years in USA and Europe, but it has recently

been introduced into South East Asia by Broadgate Construction through its

manufacturing partner, Easy Panel Construction Co., Ltd. The client’s requirements

were for a hybrid combining the strengths of standard precast concrete panels

together with the lightweight and insulation properties of the Easy Panel 3D

sandwich technology, as well as needing a short completion date and cost-effective

materials. This is due to wanting to comply with the new “Green Bangkok” city plan

released on May15th, 2013. In order to achieve the successful on-time delivery,

several parties are involved both within Broadgate and together with our partner

companies in developing the end product that satisfactorily meets all demands.

Mathieu Testa

June 2013—BROADSIGHT by

Q & A

Meet Ken Golby

This month, we had the opportunity to meet Ken Golby, CEO of

Excelsior Worldwide Limited, a fund management company created in

2005, based in Bahamas. Ken Golby started in the finance industry in

1982. He then moved from consultant to a position of Managing

Director of a national independent brokerage. After some 10

successful years onshore, Ken moved to Dubai with offshore company

Finexco Ltd before finally coming to Bangkok, Thailand.

Q: What attracted you to South East Asia and

Thailand in particular? What are the

opportunities here?

A: South East Asia is a growing market. This is

especially true for Thailand in terms of growth

and opportunities. I moved here 10 years ago

and it has drastically changed from an under-

developed economy to now, an emerging

economy. Nowadays it is a key market that

attracts a lot of people for many different

reasons. First, the unemployment rate in

Thailand is really low, less than 1%! In

comparison, Germany has the lowest

unemployment rate within the European Union

and it only scores 5.9%. Moreover, Thailand is a

How different is running a company in Asia

from Europe?

To be honest, I would say that generally

managing a business in Asia is much easier

than in Europe mainly regarding employment.

Of course, we can mention the lower labor

costs as well as the regulations being a little

more flexible but, overall, I am thinking about

the cultural differences.

Asian countries have been a lot influenced by

Confucianism, which is an ethical and

philosophical system.

hub in Southeast Asia attracting every year

more and more foreign investment. Finally, we

have to mention the Thai lifestyle a mix

between Europe and Asia that is really

comfortable: the life is affordable, the weather

here is always warm, the cuisine delightful and

the culture “jai dee” which means warm heart.

This makes Thailand a great place for

retirement. As a result more and more

expatriates have come to live here over the

past few years and therefore the market

needs have increased. That’s what attracted

me here as have many other western

businessmen and entrepreneurs.

Ken Golby, CEO of Excelsior Worldwide Limited

June 2013—BROADSIGHT by

Thus, respect to elderly people and non-confrontational behavior are

two key points in the Asian culture that drastically change the way of

doing business here compared to Europe.

Regarding the Hofstede cultural analysis, we can see that Thailand as an

example is a high Power Distance country, scoring 64 instead of United

Kingdom that scored 35. This means that Thai society is hierarchical.

Therefore the drawbacks of such differences can be a difficulty for Asian

people to work within a flat structure and being managed by a younger

person.

Q: One of our core values at Broadgate Financial is transparency.

How important is transparency in your industry?

A: Transparency is an important issue for us. Not only because of a

legal obligation but because we truly believe in transparency to

establish the best relations possible with our clients. We apply very

strict rules to the products we invest in. They have to be entirely

transparent and to provide us everything needed in order to take a

decision such as a detailed fact sheet, fee disclosure and even more

important: proof of good corporate governance.

We need to be able to inform our clients on everything. On the other

hand we expect our clients and all of the stakeholders to have the

same transparency.

It is our day-to-day work where we have to be prudent and take very

seriously transparency issues. We prefer to lose a client because of a

lack of transparency than doing something we severely condemn.

“It takes 20 years to build a reputation and 5 minutes to ruin it”

– Warren Buffet

Pierre-Louis Vouteau & Bénédicte Ciotti

Excelsior Worldwide Limited is an independent, active investment management firm specializing in Multi-Manager, Multi-Asset class offshore

investment funds. The funds are domiciled in Guernsey and Mauritius.

For further information on Excelsior funds please visit their website; www.excelsiorfunds.net

June 2013—BROADSIGHT by

I S R

Dao De Xin Xi, a Thai elderly people

practice Dao De Xin Xi (DDXX) was created in Bangkok in 1998. It is a shortened

version of Tai Chi in order to make it more accessible for elderly people.

Kitvaris is our Finance Manager at Broadgate Financial and not only

practicing Dao De Xin Xi, he is as well greatly involved in the DDXX

International Foundation, being an event organizer.

Kitvaris, known as Num in Broadgate Financial, practices it every day at

5am; he says: “It is a real habit that helps me feel better and I couldn’t

start a day without it! Dao De Xin Xi is not only about exercises but also

mediation and prayer for world peace.” Being a regular practitioner, he

is as well fully involved in the Dao De Xin Xi Foundation, as an event

organizer in Bangkok: “I can be asked to organize events or just give a

hand. It depends on the location and the size of the event but at least

every month, happenings are going on.”

The last event that Num organized was the Songkran Party, in April. It

gathered more than 200 people for celebrating traditionally the Thai

New Year’s Eve (no water guns here!) by showing respect to elderly

people around speeches, traditional ceremony, dances and activities

such as baking and sewing. In September 2013, the annual Dao De Xin

Xi meeting will be held in Kanchanaburi gathering 1500 people.

Bénédicte Ciotti

Tai Chi is a Chinese practice combining exercises and meditation. It

consists of a series of individual movements (at least 108!) linked

together in a continuous manner that flows smoothly from one

movement to another. Therefore it can be really hard to do Tai Chi for

elderly people and some shortened versions have been developed for

them. Dao De Xin Xi is the Thai version of one.

Dao De Xin Xi uses 9 selected movements as well as meditation

believed to have health benefits for 9 physiological systems in the

body such as the cardiovascular system, digestive system, respiratory

system etc. A 2011 study showed that elderly people who practiced it

3 times per week for 12 weeks presented a significant improvement in

their static and dynamic balances and their quality of life as well as

physical and psychological health and social relationships. The

Department of Physical Medicine and Rehabilitation,

Phramongkutklao Hospital has even adopted Dao De Xin Xi exercise

for patients since 2006.

Num, doing some Dao De Xin Xi

To learn more about Dao De Xin Xi, you can visit their website or watch

the following video: http://www.youtube.com/watch?v=uCxtBpYhWK8.

June 2013—BROADSIGHT by

Article

Corruption: Business Ethics

How much we all here in Broadgate love Thailand and what it

has to offer, you have to agree it is not the most ethical country

to do business. Although there are far worse “unethical”

countries, especially in this region of the world, Thailand does

not perform really well globally. Corruption (the act of

fraudulent behavior) is a serious problem ranking 88 in the

world in the 2012 corruption perception index (meaning there

are 87 less corrupt countries than Thailand).

On the field of human rights, Thailand does not score extremely

badly but still there is a lot of room for improvement. Especially

in the Southern regions dominated by a Muslim population, a

lot of human rights are being violated. Luckily in the field of

environmental protection Thailand scores quite well.. Although

Thailand’s economic growth has come with significant

environmental costs, Thailand has put considerable effort into

conservation which ranks the Kingdom at 34th place in 2012

Yale’s environmental performance index.

Recently, I attended a seminar about achieving success for

business codes of ethics in an unethical environment. The

organizers of this seminar and I were surprised by the little

attention this seminar attracted concluding with the relatively

few people that showed up. A reason given for this absence was

the topic would not have been of direct personal interest for

business people – that is simply money making.

As David Lyman (Chairman and Chief Values Officer of

Tilleke&Gibbins) explained, first there is a positive relation

between age and how much one cares. The more you mature,

the more you start caring about ethics. However, at a certain

point, this relation changes negative: the older you become the

less you are interested in ethics. Only at this moment this

turning point is when people start caring less differs between

people.

June 2013—BROADSIGHT by

While at first it would seem not directly of

interest for companies to act ethically, as our

plantation support officer Max Schuetzeberg

mentioned in his report on the Importance of

Investment in Sustainable Development for

plantations, reputational factors and the

public demand to publish sustainable reports

might force companies to pay more attention

to their ethics of business.

In a relatively “unethical” and less regulated

environment as Thailand is, this remains hard

however and especially for smaller companies

to which less of the public’s attention has

been focused. They enjoy less monitoring and

less reputational risk of bad behavior, since

institutions and the rule of law are not

developed as much. There is less incentive to

act responsibly and therefore to perhaps opt

for the easy way.

How does this apply to Broadgate? Out of our

three core values under which we operate,

two deal with ethics: Sustainability and

Transparency. How does this appear in

Broadgate’s operations? It is very easy to put

something down like this and most companies’

core values will look similar

In some way: assuring they are ethically

responsible, that they care.

We are absolutely dedicated to operating

legally and transparently, reflecting Broadgate

Advisory as one of the relatively few

investment research companies in Thailand

that is fully licensed by the Ministry of Finance

and regulated by the Thai Securities and

Exchange Commission.

While we will never deny that also Broadgate

is founded with the intention to make money,

this is encompassed with the commitment to

do this in an ethically responsible and

sustainable way. There has been a lot of

negative attention around (palm) plantations:

appropriation of local possessions,

environmental destruction and suppression of

local people are examples of this.

While there is no strong presence of the rule

of law in a country like Cambodia, where

Broadgate Plantations is predominantly active,

we are committed not to disadvantage the

local Khmer people and assist them in

benefitting from our projects as well. For one

of our latest projects in Cambodia, we choose

land that has been virtually unused – the few

local people will be compensated or employed

– and where the environmental impact will be

as minimal as possible (land that already has

been stripped years ago to minimize the

destruction of any new forest).

This is not just out of a commercial belief, but

also out of a personal belief in doing right for

the nations citizens.

“My biggest problem with modernity may lie

in the growing separation of the ethical and

the legal”, Nassim Nicholas Taleb, The Bed of

Procrustes: Philosophical and Practical

Aphorisms

Nathan Koekoek

June 2013—BROADSIGHT by

Broadgate Consultants (Thailand) Ltd.

2811, Level 28, The Offices atCentral World,

999/9Rama 1 Road, Patumwan, Bangkok 10330 Thailand

Telephone: +66 2264 5706

Fax: +66 2646 1004 Email: clientservices@broadgatefinancial.com

http://www.broadgatefinancial.com/

http://broadgateadvisory.com/ http://www.broadgateconstruction.net/ http://www.broadgateplantations.com/

Authors contributing in this issue:

Bénédicte Ciotti Nathan Koekoek Sebastien Le Van Simon Osborne Mathieu Testa

Juliette Vidailhet Pierre-Louis Vouteau

Many thanks to :

Ken Golby

Contact

The views and opinions expressed in this magazine are those of the authors and do not necessarily reflect the official

position of The Broadgate Financial Group.