Thailand

Foreigners Excluded from Agricultural Land Leases in Thailand. The Agricultural Land Lease Act B.E. 2524 (A.D. 1981) as amended recently by the Agricultural Land Lease (No. 2) B.E. 2559 (A.D. 2016) prohibits foreigners from leasing agricultural land in Thailand effective from 30th April 2016.

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Thailand's Business Collateral Act Will Come into Force on 2nd July 2016. The Business Collateral Act B.E. 2558 (A.D. 2015) governing business securities allowed in Thailand will finally become effective on 2nd July 2016. Projects, businesses, accounts receivable, inventory, immovable assets used directly in development projects and intellectual property can be used as collateral.  The collateral provider can retain the physical possession of the collateral property and put the collateral property to commercial use during the collateral period.

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Amendment to the Bankruptcy Act of Thailand Helps SMEs. The Bankruptcy Act (No. 9) B.E. 2559 (A.D. 2016) ("Amended BA") has come into force since 25th May 2016.  The Amended BA permits SMEs facing a liquidity crunch and unable to repay their debts to request rehabilitation.  This will help an ordinary person or a juristic person who has debts of no more than 10 million baht to restructure debts more easily. 

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Myanmar

Draft of Myanmar Companies Law.  Myanmar is drafting Myanmar Companies Law ("MCL") to replace its century-old Myanmar Companies Act 1914 ("MCA").  The Directorate of Investment and Companies Administration ("DICA") drafted the MCL with assistance from the Asian Development Bank. The draft is now being reviewed by the Attorney General Office.  It is expected to be submitted to the Parliament this year.

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New Official Fees for Company Registration and Corporate Documentation in Myanmar. The DICA has annouced new offcial fees for company registration and other related company matters effective from the 1st of June 2016.

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For further information,  please contact:

Kowit Somwaiya, Managing Partner, kowit.somwaiya@lawplusltd.com

Vincent Birot, Counsel, vincent.birot@lawplusltd.com     

Paramee Kerativitayanan, Associate, paramee.kerativitayanan@lawplultd.com        

Khin Htwe Myint, Advocate, khinhtwemyint@lawplultd.com        

Khin Khin Zaw, Advocate, khinkhinzaw@lawplultd.com        

LawPlus Ltd.
Unit 1401, 14^th Fl., Abdulrahim Place, 990 Rama IV Road, Bangkok 10500, Thailand
Tel. +66 (0)2 636 0662  Fax. +66 (0)2 636 0663
www.lawplusltd.com

My Marketing Automation Shame…

For over 12 years now, we at Digital Alchemy have built a business on the mantra that Marketing Automation is the saviour of direct marketing.  It saves marketers from being forced to execute broadcast communications and finally enables them to unlock the true value of their customer data by being able to match products, offers and content to customers based on their needs, one customer at a time.  Marketing Automation was the utopian dream that enabled true 1:1 marketing, making sure that every communication was relevant, thus driving customer engagement and customer profitability…

 

Over the past 5 years, many others have entered the fray espousing the merits of Marketing Automation and organisations have been adopting Marketing Automation at an unprecedented rate.  I should be like a pig in mud. So, why do I sit here in 2016 in the middle of a Marketing Automation boom in dismay?  What we have unwittingly done is unlocked the last gate between the data and a digital avalanche of marketing crap.  In most cases we have not enabled highly targeted relevant marketing communications. We have enabled the easy execution and automation of broadcast emails.  To make matters worse, as big technology vendors fight it out for sales, they have precipitated a race to the bottom on email pricing. It has become virtually free.  There is not even a financial cost to being sloppy or lazy with your targeting.  In fact, it’s probably more economic to blast an email to your entire base than it is to think for even 30 minutes about who you should really be sending it to.

 

So, I say knock yourself out, and when your open rates descend towards 10%, and you need to send a million emails to get a handful of sales, maybe then the thinking will change and we can get back on track creating highly targeted relevant communications that drive engagement and value.   

 

I was wrong, and as an analyst, should have known better.  Marketing Automation is not the panacea to all ills, it’s a vehicle which needs to be driven…drivers need to make decisions…it’s time we step up from Marketing Automation and start focusing on the Marketing Decisions.  The decision on who to target. The decision on what offer or content to present, and the decision on how to present it.  Driving Marketing Automation without making these decisions well, is like driving down the road at night with the headlights turned off. Thrilling and exhilarating for a while, until the fear sets in and you suddenly realise that you’re driving along a mountain road and there’s a cliff around here somewhere...

 

The future of Marketing Automation is automated decisioning.

About the author

     

Regan Yan is the CEO at Digital Alchemy, Asia Pacific’s most trusted database marketing partner that is behind the success of many organisations’ data-driven marketing program. Regan is a subject-matter expert in analytical database marketing and customer relationship marketing, as well as an in-demand presenter and keynote speaker at national and international events. He also authors thought leadership pieces on data-driven marketing that can be found on the DA Blog.

   Courtesy: Columbia University Athletics/Mike McLaughlin

Shrewsbury Graduate Wins Top NCAA and LPGA Awards

Bangkok, 10 June 2016 - Following a strong junior campaign in the American National Collegiate Athletics Association’s Golf programme, Arpasiree “Jackie” Chulya has been unanimously selected Ivy League Player of the Year in 2016 on April 26. An alumna of Shrewsbury International School Bangkok, Chulya will begin her final year at Columbia University this September. 

 

Chulya finished the year with a scoring average of 74.95, the second lowest single-season score ever recorded in the NCAA. She becomes only the second golfer in the history of Columbia’s programme to be named Ivy League Player of the Year. Chulya set the single-season programme record for the most birdies made at 62, par-4 scoring at 4.16, and was also named co-winner of the William Terminello award, the most valuable player on the Columbia women’s golf team.

 

On May 18, the LPGA Foundation name Chulya the winner of the 2016 Dinah Shore Trophy, an award which recognises female collegiate golfers who excel in both academics and athletics. The criteria states that the golfer must maintain at least a 3.2 on a 4.0 grading scale while playing in at least 50 percent of the team’s scheduled events and maintaining a 78.00 or less scoring average. In addition, awardees demonstrate outstanding leadership skills and community service. The LPGA reports that Jackie “devotes most of her summers working and volunteering in her community.”

 

Not only a golfer, Chulya is significantly involved in Columbia's Student Athletic Advisory Committee (SAAC) and Thai Club. As vice president of Thai Club, Chulya promotes Thai culture across the university through food festivals, carnivals and study breaks. Chulya also maintains a 3.82 GPA. Upon graduating from Shrewsbury International School, Chulya earned A grades or higher in all of her Cambridge International Advanced Level exams.

 

As part of the Dinah Shore Trophy Award, a $10,000 grant will be awarded to the Columbia University women’s golf program to help develop emerging talent in the sport. 

 

Shaun Meaney, Shrewsbury’s Performance Leader in Golf who oversaw Chulya’s development on the School’s Golf Team, is unsurprised by her success at the NCAA Division I level. He commented, “We are so proud of Jackie’s progress at Columbia, and hope that her tournament experiences representing Shrewsbury have helped to develop her competitive edge.”

   Courtesy: Columbia University Athletics/Gene Boyars

About Shrewsbury International School

Shrewsbury International School offers an inspirational English language education for carefully selected students, caring for them in an organisation committed to continuous improvement, and providing outstanding opportunities both in and out of the classroom. Renowned for its pursuit of academic, artistic and sporting excellence, the school currently has 1,620 students aged 3-18 representing 40 different nationalities.

Shrewsbury International School follows the national curriculum of England and Wales, culminating in Cambridge International Examinations’ IGCSE and A Level examination programmes. Building upon close ties to Shrewsbury School in the United Kingdom, the School possesses a longstanding record of academic excellence and ranks among the top academic institutions in acceptance rates across the world’s top universities and colleges in the United States and United Kingdom.

For more information or press inquiries, please contact:
Jane Arghabhadra
Director of Marketing, Shrewsbury International School
Email: Jane.a3@shrewsbury.ac.th  Tel: 02 675 1888 ext. 1113

Loyalty Programs - What happens after the sign up?

By Regan Yan, CEO of Digital Alchemy

 

Loyalty programs are like bottoms these days, everyone has one.  Retailers, airlines, banks, telco’s, coffee shops, restaurants; almost anyone who has customers has some form of a loyalty program, even my local bakery has one.  Recent studies have shown that consumers will join up to 10 loyalty programs but only be active on 3 - 4 of them. The same studies have also shown that, of any one program the global benchmark is for, around 35% of the base are active. So you don’t have to be a rocket scientist to figure out that there is a huge wastage caused by a number of factors:

1.      An acquisition offer that is only compelling for the first transaction (spend $100 and get $10 off your transaction).

2.      A sign up process that requires no registration. So although there is a low barrier to entry, there’s also an ultra-low level of engagement and investment…let’s face it, if it’s free and easy, it’s got no value.

3.      No compelling transaction stimulation proposition; earning points on something that you purchase once a month means that it will take a month of Sundays before you get anything, and when you do purchase you probably have forgotten your card.

4.      Customers being treated as if your organisation has no clue and get regular generic special deals for Bras when they are a 45-year-old male.

So, here are some things that you can do to improve your program’s engagement:

1.      Stop treating your members as if they were anonymous. We recently implemented our offer decisioning engine into a client’s monthly newsletter and doubled the sales because customers were presented with the product offers that were relevant, rather than a generic set of offers for all.

2.      Be reactive. Send customers offers in response to things they have done or things they haven’t done that you expected them to do. Don’t just send them a weekly email because you have something to say.

3.      Protect your customers from yourself. The great thing about automation is that it makes it easy to contact your customers. The downside is that it makes it too easy to contact your customers.  Email open rates range from 12% to 70%...the difference is the relevance of the emails you send.  Companies that send “Blast” emails get between 12% and 20%.  There is a finite number of times that you can have an irrelevant conversation with your customers. There is an infinite number of times you can have a relevant one.

4.      Make sure your program is designed to drive value creating-behaviours with your customers. I can’t tell you how many programs I have seen that are either a cut and paste of the Tesco Clubcard or another program, or designed around the organisation’s agenda or commercial deal. Both are bad.  Most organisations have a unique product mix and relationship with their customer. Think about how customers create value for your organisation and how you best deliver value to your customers.  Keep it simple and easy to understand.

5.      Don’t build your program to derive all its profit by robbing customers. I’ve seen a few programs where the viability of the program is determined by the “breakage” or the value of unused points or credits, which are expired or unredeemed. It’s practically impossible to be successful with these programs, because the more successful the program from a customer perspective, the less financial the programs is. It makes no sense at all.

6.      Reward loyalty not disloyalty. There is an interesting phenomenon that occurs when programs are operational. The most aggressive offers are often focused on winback or customers who split their spend between competitors.  The net result is that the most disloyal customers often get better offers than the most loyal customers. In some cases customers figure this out and have two memberships, so they can appear to be at risk or split. Therefore they get the best offers.

So if you are going to design a program or redesign a program, think carefully about the value exchange between your program and your customers.  Understand clearly how value is created and distributed on both sides of that equation, and make sure your program facilitates this exchange.  Have a program that is active, not passive. Be proactive and don’t rely on the program earn and burn policy to do all the work.  Make rewards reachable and valuable.

About the author

Regan Yan  is the CEO at Digital Alchemy , Asia Pacific’s most trusted database marketing partner that is behind the success of many organisations’ data-driven marketing program. Regan is a subject-matter expert in analytical database marketing and customer relationship marketing, as well as an in-demand presenter and keynote speaker at national and international events. He also authors thought leadership pieces on data-driven marketing that can be found on the DA Blog .

 

 

Mazars to merge with Chinese audit firm ZhongShen ZhongHuan

Mazars, the integrated and independent international organisation specialising in audit, accountancy, tax, legal, and consulting services, is strengthening its international position by merging with Chinese audit firm ZhongShen ZhongHuan.

In China, Mazars operates its four offices including Beijing, Guangzhou, Shanghai and Hongkong.

The deal follows mergers in Germany, Australia, Mozambique, and Cyprus during 2015, and will add 1,800 professionals to Mazars’ existing global team of 16,000, creating a full-service firm with the ability to support clients in 77 countries.

Philippe Castagnac, CEO of Mazars and Chairman of the Executive Board, states that, "after the integration of an important German structure in 2015, this operation in China is not only a significant boost to Mazars' presence and capacities, but also an undertaking for additional development within one of the world's leading economies."

Rob Hurenkap, Managiing Partner of Mazars in Thailand

Rob Hurenkamp, Managing Partner of Mazars in Thailand, said, "This opportunity will allow the firm to better support Chinese companies seeking to invest in Thailand and in the other way round."

Mazars has an office in Bangkok which combines the benefits of an integrated global partnership with the entrepreneurial drive of the senior advisors. It has enjoyed strong growth over the last 15 years, and has achieved a leading position in the market, for audit, accounting, tax, legal and business advisory services. A key feature of the practice is the multinational composition of its advisors, with British, French, Thai, Dutch, Japanese, and Australian nationals among its senior advisors.

Last year, Mazars Thailand stated that its revenue grew by 31.9% compared to the previous year, consisting of 18.2% due to

organic growth and 13.7% as a result of foreign exchange differences.

SAMITIVEJ AND SANO HOSPITALS TEAM UP TO BRING INNOVATIVE GI ENDOSCOPY TO THAILAND

 

Samitivej Sukhumvit Hospital, a leading hospital under the Samitivej Group, celebrates the First Anniversary of its Liver and Digestive Institute, a collaborative operation with Japanese Hospital SANO. The Institute specializes in endoscopy and offers full-cycle diagnostic services and treatment of liver and gastrointestinal diseases to improve quality of life for patients.

Dr. Udom Leelataweewud, Deputy Director of Samitivej Sukhumvit Hospital, revealed that in the past year through collaboration between SANO Hospital and Samitivej Sukhumvit Hospital, the two hospitals have also launched a medical exchange program allowing Samitivej doctors to study innovative medical techniques from their counterparts in Japan.

SANO Hospital recently introduced the Narrow Band Imaging technique to Samitivej Hospital, which is a technique that applies the use of specific green and blue lights to enhance the details and other obscure aspects of a gastrointestinal endoscopy. It is used to increase the efficiency of the newly-developed Narrow Band Image International Colorectal Endoscopic Classification (NICE) with magnification technique, which offers the following benefits:

●     Enables early detection of colorectal diseases, even in the absence of physical tumors

●     Provides more accurate diagnoses which leads to more precise treatments

●     Shortens medical procedures, promotes faster recovery and reduces complications, with no need for patients to stay at the hospital

●     If abnormalities are detected, biopsies can be taken safely, with no need for unnecessary surgery

SANO Hospital has also transferred knowledge on Endoscopic Ultrasound to Samitivej Sukhumvit, providing services as follows:

●     Detecting cancers of the pancreas, lymph glands around the pancreas, and associated organs such as the bile ducts, gall bladder, stomach wall and intestines

●     Providing diagnoses of various stages of disease and tumor examination for accurate treatments

Another innovative technique brought to our hospital is Endoscopic Retrograde Cholangiopancreatography (ERCP), which is used to precisely diagnose and treat abnormalities in the bile duct, leaving no surgical scars on the abdomen and enabling patients to resume their daily activities shortly after treatment.

Korn Pongjitdham, M.D. and Thawat Mongkolporn, M.D. are two of Samitivej’s doctors who participated in the exchange program with SANO Hospital and shared their experience enthusiastically:  “Not many doctors in Thailand are capable of carrying out such a complicated technique like Narrow Band Imaging with magnification. We are thrilled that this progress will raise the standards of our practice even higher.”

Every doctor working at Samitivej’s Liver and Digestive Institute is trained to master this new Narrow Band Image International Colorectal Endoscopic Classification (NICE) technique. The center also specializes in the diagnosis and treatment of liver and gastrointestinal diseases including infectious diseases, alcoholic liver disease, fatty liver disease, pancreatitis, gallstones and many more illnesses. The Institute uses the latest medical innovations and technologies, and is equipped with a team of specialists. Located on the 2^nd floor of Samitivej Sukhumvit Hospital, the Institute has 10 specializing doctors, 12 nurses, four technology experts, 12 examination rooms, five endoscopy rooms and 10 patient recovery rooms.

 

 

NEWS RELEASE

ASCOTT THAILAND HOSTED CLIENTS APPRECIATION SUNSET DINNER CRUISE EVENT

 

Thailand, 13^th January 2016 – The Ascott Limited (Thailand) has recently invited over a hundred of its supporting corporate clients, The Link Club members to share the fun and joy of the festive season on a cruise.   

Every year, Ascott hosts this special event to express gratitude and appreciation to its corporate clients for their business over the year. This round, Ascott made an event even more exciting and memorable with a 2-hour long private evening cruising and dining along the famous Chao Phraya River.

Over 100 clients together with their family members and friends were enjoyed a fine dining in an evening cool breeze while the boat slowly moving from place to place of the lovely Bangkok nightscape.

To add excitement and more joy, attendees were able to win many valuable prizes including a free trip to experience the Ascott way in its origin country in Singapore, free nights from Ascott’s properties in Thailand and other popular cities within Asia and many more.

Ascott currently operates ten properties in Thailand with 9 properties in Bangkok and one in Sri Racha with 4 new properties on the way in Pattaya. Ascott’s properties are all located in prime business, entertainment and shopping districts of the city.  With modern facilities and personalised services, Ascott’s properties ensure a comfortable and enjoyable stay, whether for business or leisure.

The Link Club (TLC) is an Ascott reward programme offering top corporate clients a delightful selection of benefits and treats including a wide range of enticing rewards through various corporate appreciation events and personalised workshops. 

For more information about The Link Club, please visit our website: www.thelinkclub.com

  

About The Ascott Limited (www.the-ascott.com)

The Ascott Limited is a Singapore company that has grown to be the world's largest international serviced residence owner-operator. It has over 26,000 operating serviced residence units in key cities of the Americas, Asia Pacific, Europe and the Gulf region, as well as about 16,000 units which are under development, making a total of more than 43,000 units in over 270 properties.

The company operates three award-winning brands – Ascott, Citadines and Somerset. Its portfolio spans 95 cities across 27 countries, 26 of which are new cities in Ascott's portfolio where its serviced residences are being developed.

Ascott, a wholly owned subsidiary of CapitaLand Limited, pioneered Asia Pacific's first international-class serviced residence with the opening of The Ascott Singapore in 1984. In 2006, it established the world's first Pan-Asian serviced residence real estate investment trust, Ascott Residence Trust. Today, the company boasts over 30 years of industry track record and award-winning serviced residence brands that enjoy recognition worldwide.

Ascott’s achievements have been recognised internationally. Recent awards include World Travel Awards 2014 for ‘Leading Serviced Apartment Brand’ and ‘Leading Serviced Apartments’ in Belgium, France, Germany, Indonesia, the Philippines, Singapore, Thailand and Vietnam, Business Traveller Middle East Awards 2015 for 'Best Serviced Apartment Company Middle East', Business Traveller Asia-Pacific Awards 2014 for ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence’, Business Traveller UK Awards 2014 for ‘Best Serviced Apartment Company’, Business Traveller China Awards 2014 for ‘Best Serviced Residence Brand’ and 'Best Serviced Residence', TTG China Travel Awards 2015 for ‘Best Serviced Residence Operator in China’ and DestinAsian Readers’ Choice Awards 2015 for ‘Best Serviced Residence Brand’. For a full list of awards, please visit

http://www.theascottlimited.com/en/aboutus/awards.

Visit www.the-ascott.com for more information and connect with us on social media at www.the-ascott.com/connect.

About CapitaLand Limited (www.capitaland.com)

CapitaLand is one of Asia’s largest real estate companies headquartered and listed in Singapore.  The company leverages its significant asset base, design and development capabilities, active capital management strategies, extensive market network and operational capabilities to develop high-quality real estate products and services.  Its diversified global real estate portfolio includes integrated developments, shopping malls, serviced residences, offices and homes.  Its two core markets are Singapore and China, while Indonesia, Malaysia and Vietnam have been identified as new growth markets.  The company also has one of the largest real estate fund management businesses with assets located in Asia.

 

CapitaLand’s listed real estate investment trusts are Ascott Residence Trust, CapitaLand Commercial Trust, CapitaLand Mall Trust, CapitaLand Retail China Trust and CapitaMalls Malaysia Trust.

Issued by: Ascott International Management (Thailand) Limited  

Website: www.the-ascott.com

41 Sukhumvit 16, Sukhumvit Road, Klongtoey, Klongtoey, Bangkok 10110 Thailand

For more information, please contact:

 

Myla Caceres, Director of Sales & Marketing

Tel: (66-2) 204 4341       Email: myla.caceres@the-ascott.com

Juree Umrarong, Assistant Director of Marketing

Tel: (66-2) 204 4381       Email: juree.u@the-ascott.com

Yada Anukoonpittaya, Assistant Marketing Manager

Tel: (66-2) 204 4382       Email: yada.a@the-ascott.com

Singapore — (December 16, 2015) — Allied Pickfords, one of the recognizable household goods moving brands of SIRVA Worldwide, Inc., was honored with the International Moving Company of the Year Award from the Forum for Expatriate Management (FEM). This was the third consecutive year the company was recognized with an Expatriate Management and Mobility Award (EMMA).

Allied Pickfords was recognized for its commitment to clients, employees and communities where we operate.

“This is a fantastic achievement for Allied Pickfords. To win this award three times in a row is amazing. It’s a testament to the dedication and expertise of the Allied Pickfords employees and their commitment to delivering a custom, quality moving experience,” said Jacob George, president of SIRVA for the Asia and Middle East markets.

When it comes to clients, Allied Pickfords strives to consistently deliver exceptional results for every move. The company aims to always act with the customers’ interest in mind. This includes optimizing customer experience through innovative technology tools and expert insights.

The EMMAs are the global mobility industry’s premier awards, celebrating excellence in global mobility worldwide and signifying continued improvement and innovation in the delivery of relocation services.

To learn more about Allied Pickfords, visit www.alliedpickfords.com.

Interest rates are likely to remain low; Average returns on Growth assets are likely to be constrained; in the absence of an external shock Share markets should continue their long term upward trend, albeit at a more modest pace.

 

We are now in an extended period of slow economic growth, with the IMF Global GDP growth forecast at around 3.5%. This will make it more difficult in identifying investment opportunities, with subdued returns across all asset classes. There have been a number of factors contributing to this muted growth, most stemming from the GFC (Global Financial Crisis);

• ·         Loss of confidence – consumers are paying down debt, and saving instead of spending; businesses are less likely to undertake capital investments, seeking more productivity from existing assets.
• ·         Put another way, the increase in consumer debt has slowed resulting in a slower growth in consumer spending. Growth in Business debt is also slowing as businesses strengthen their balance sheets; reducing capital spending impedes productivity growth.
• ·         Reduced capital spending also inhibits employment growth leading to persistently higher unemployment rates.
• ·         Plus, a series of economic and natural disasters followed by the recent uncertainty over the China growth story, falling resource prices, and the US interest rate decision have all served to exacerbate the above loss of confidence.

 

What can we expect as a result of slower economic growth?

Low inflation as constrained spending keeps prices low; Low interest rates which are required to boost growth and use up spare economic capacity; and, a low risk of a global economic downturn.

 

The positive, from an investment perspective, is that we are likely to see an extended period of growth in share markets, although with higher than normal volatility. As mentioned in the September article “For a Bear (extended falling) market to occur there has to be a fundamental reason typically when countries, in particular the U.S., fall into recession. Some but not exclusive pre-cursors to recession are over-valued asset prices, high employment, high inflation, followed by significant monetary tightening (Central Banks increasing interest rates). As discussed above none of these pre-cursors are currently evident.

 

The problem for investors in this market is that they inherently gravitate to traditional ‘safe havens’, whether it is cash and bonds where currently returns are low with the chance of capital loss as interest rates eventually start to rise; chase ‘blue chip’ stocks bidding them up beyond fair value; or ‘bricks and mortar’ where returns are highly reliant on robust research, as mentioned in last month’s article.

 

In investing there are no easy picks or sure things, as with every important decision, research; a sound strategy; and commitment, are the key factors. As investors we subscribe to a broadly diversified portfolio containing all of the major asset classes, in a low growth/return environment the allocation to each asset class is fundamental.

 

As with any investment decision one should seek advice from your professional adviser before investing!

Important note: While every care has been taken in the preparation of this article, MMT Financial Solutions (ABN 40 147 903 526, AFSL 458115) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.

 Cutting edge built environment technologies,  rapid urbanisation and visionary developers  have led to buildings becoming taller and  taller.

 

 The 828 m supertall Burj Khalifa in Dubai,  United Arab Emirates, was the defining tall b  building project for many years, but this title  will soon be eclipsed by many other planned  tall buildings, such as the 850 m Sky City in  China and the 1001 m Kingdom Tower in  Jeddah, Saudi Arabia.

 

 Aurecon’s Tall Buildings Leader, Dr Andy  Davids, explains that “Overall, supertall  buildings are an efficient use of space and  they also free up ground space for roads and  farms, as well as parks and other public  spaces. In many markets, this is what is  needed and why tall buildings make sense.  The most compelling business case however,  is that iconic buildings such as supertall  towers mark a place and increase the value  of all assets surrounding that place. This is a  very powerful driver in the business case for  such projects where a master developer  owns the land within the circle of influence of  the supertall marker. Tall buildings aren’t  just status symbols, they’re physically and  economically needed in today’s cities,”  asserts Davids.

 

”Another key feature of the current generation of supertall buildings is that they are no longer ‘single use’ buildings. Most projects over 100 levels provide a mix of uses, including hotel, serviced apartments, residential, office and observation experiences all in the one building. This is essentially a physical manifestation of today’s complex business case, and the provision of such a variety of spaces poses significant technical challenges,” says Davids.

 

Tall buildings need to be built quickly to be financially feasible

 

 

The lure of a supertall structure lies in its ability to mark a time and a space. To be financially viable, however, a supertall building must be designed so that it can be built quickly.

 

“Engineering consultancies should keep asking themselves how long the owner and their bankers will wait for a return on investment. It took seven years to build the 828 m tall Burj Khalifa, and all future supertall buildings will be looking at a similar timeframe. Even if engineering advances can shorten that time, it is unlikely to be a dramatic shortening,” says Davids.

 

 

“Engineers need to pick up the pace in order for the economics of a supertall building to make sense for the owner. For this reason, building designs often favour simple floor formwork and rapid wall formwork. Construction crews are then able to repeat the same job on every floor. Once they achieve a level of familiarity with their tasks, the labour cost will plateau and, more importantly, the speed of construction per floor will increase,” explains Davids.

 

Another way we might see faster construction times on supertall buildings is by having construction work take place on two levels, as was achieved for the Emirates Towers in Dubai. Lower levels tend to be more complex than those higher up, so if we can create two construction ’fronts’ in the form of a secondary base level above the lower levels, then work on the upper construction front can continue, while work simultaneously occurs on the more difficult podium levels.

 

Prefabricated and modular solutions can also pose a possible solution when it comes to reducing the time and cost of traditional techniques. The construction of the Sky City in Changsha, south-central China, has stalled but the planned skyscraper is intended to be constructed using prefabricated pieces.

 

“Sky City uses an Ikea-like assembly method where parts of the building are fabricated in factories off site, transported to the job and then assembled on site. Considerable time is still spent preparing and storing the pieces in order to deliver a very short completion time for assembly on site,” says Davids.

 

While the beginning-to-end construction time is certainly reduced compared with more conventional techniques, Davids says that it’s important to recognise that it’s not as dramatic as simply comparing the shortened erection phase with a more traditional alternative.

 

“Preparation of components under factory conditions should deliver consistent material quality and also lead to a significant reduction in material wastage. As with all prefabricated systems, considerable investment in a factory is required while the architectural design of prefabricated structures can be a little limited. But, all things considered, the idea is credible and feasible, although it probably won’t be suited to all markets,” says Davids.

 

Tall buildings require a business case

 

 

Owners aren’t always able to wait over a decade to start seeing a return on their investment. What many people don’t realise about some of the world’s tallest buildings, including the Burj Khalifa, is that the owners had to think outside of the box to find a good business case for the project.

 

“Few people will be aware of the business case around the creation of the Burj Khalifa. The real magic of this building is that its owners also own the land and properties around it. The owners can charge a premium for these buildings, in addition to the income derived from the Burj Khalifa, because people are willing to pay for the prestige and views associated with being so close to the landmark. Also, the Y-shaped design of the Burj Khalifa ensures that occupants are never more than one room away from the stunning view, making tenancy more attractive,” says Davids.

 

As the number of supertall buildings continues to grow, engineering consultancies are in the prime position to create a business case for the developer and the developer’s clients.

 

“Being able to craft a financial model where the increase in the land value and the benefit to the citizens as well as tenants is clear, will enable owners to invest in these magnificent structures,” concludes Davids.