Lyle Walter has e-mailed me to alert me to Kitty's new post on what the government is doing to Thailand Creative and Design Centre (TCDC). Kitty blogs:
Apparently the new government is trying to extinguish anything that was created during Thaksin's years and that includes the TCDC. Just like what they did with ITV, they are planning to destroy the board members and merge the whole thing with a more traditional, more conservative National Discovery Museum which has nothing to do with anything TCDC does and supports.
There are two contrasting views in the media on the issue. First,
The Nation has primarily critical coverage of the TCDC as evidenced by this
article:
The Office of Knowledge Management and Development (OKMD) has responded to criticism over its "extravagant spending" by merging seven of its units into five and slashing its annual budget from Bt2 billion to Bt700 million.
OKMD chairman Apinan Poshyananda said the agency was launched in the Thaksin era as a public organisation to promote Thailand's competitiveness.
Prime Minister Surayud Chulanont assigned Apinan to run OKMD with "economical, efficient, transparent, and fair" policies. The agency was deemed to have spent too much money, while providing limited services and failing to engage communities.
These problems were in line with an assessment by the Auditor-General's Office, which found four problems: improper establishment as set out by the Royal decree, overspending, poor management and inappropriate salaries for some directors.
The seven units under the OKMD banner are the National Institute for Brain-Based Learning (NBL), the National Centre for the Gifted and Talented (NGT), Thailand Knowledge Park (TK Park), the National Discovery Museum Institute, the Thailand Creative and Design Centre (TCDC), the Thailand Centre of Excellence for Life Sciences, and the Centre for the Promotion of National Strength on Moral Ethics and Values.
However, some of these units will now be merged: the NBL will merge with the NGT, thus becoming the Centre for the Promotion of the Gifted & Learning Innovations; while the TCDC will merge with the National Discovery Museum Institute, thus becoming the Thailand Discovery & Creative Centre.
Apinan said the board will cut TCDC's operational budget by half to Bt75 million and slash salaries by 30 per cent.
He said TCDC has been renting office space at Emporium Tower for Bt5 million per month and paying one of its directors Bt370,000 a month. The office rental contract will be terminated in May and the agency will sign a six-year lease for 2,000sqm of space at Chulalongkorn University's Jaturas Jamjuri Building near Siam Square, he said.
The OKMD board also assigned Professor Chaianan Samudavanija as chairman and Professor Surapol Wirunrak as acting director of the Thailand Discovery & Creative Centre until a new director can be found within 45 days.
"All the board members have worked carefully and there was no bullying or political agendas. All staff will get paid and continue to work without being laid-off, contrary to the rumours," he said.
The mergers would create a new energy, he said.
On October 25, the OKMD board will meet again to set details and officially announce the establishment of the Thailand Discovery & Creative Centre.
Chaianan said the mergers were a good thing and co-operation between the units would now be better.
The contract of one of the former overpaid TCDC directors would expire in 2010, so he will be asked to step down early; however, the board would not name the director.
National Artist Professor Sumet Chumsai na Ayuthaya, a member of the sub-committee to find a new location for TCDC, said the new location near Siam Square was just as good as the old spot because it could be easily accessed by young people.
The overall budget has been reduced from Bt2 billion a year to Bt700 million. For the fiscal year 2008, TCDC will get Bt145 million, the National Discovery Museum Institute will get Bt34 million, and the OKMD will get Bt25 million.
COMMENT: The new location is at Exit 2 of the Sam Yan MRT station - see
here and for a Google Earth image
here.
The
Bangkok Post has a similar
article (
cache) and
The Manager have a similar line in many articles.
Some segments of the Thai language media, in particularly
Thai Rath, offer a different view from
The Nation and provide additional facts. This
Thai Rath article reproduced over at this
Pantip thread which I have summarised below provides a different view:
On October 17, the Minister of the Office of Prime Minister called a meeting of the Board of the Office of Knowledge Management and Development to decide whether to dissolve the TCDC and to merge it with the National Discovery Museum.
The Board resolved to remove Chaiyong Ratana-unggoon, the Director of TCDC from his position and to dissolve the Board of TCDC.
Rumours are that this government wanted to dissolve TCDC because it was was an entity set up by the Thaksin government. The government has changed the Board of the Office of Knowledge Management and Development
The effect of this is similar to what happened to ITV and will affect its 15,000 members who paid a subscription fee to use the library who will get nothing in return because the decision does not provide for any compensation.
TCDC has been opened for 2 years, has 15,000 members, and has had 685,000 users of this services [visitors?]. There have been 14 exhibitions and they have opened branches in 5 provinces and intending to open 5 more in 2008.
Reports indicate that previously the Board of the Office of Knowledge Management and Development resolved to move the TCDC and entities under the Office of Knowledge Management and Development to a new building, Chamchuri Residence Square, with a budget of 400 million baht for the project. Two of the members of the sub-committee are Sumet Jumsai Na Ayudhaya [สุเมธ ชุมสาย ณ อยุธยา] and Nithi Sathapitanonda [นิธิ สถาปิตานนท์] and this sub-committee considered the new location. The building at this new location is yet to be finished and one of the project executives is A49 which Mr Nithi is a shareholder in.
COMMENT: As noted in the Pantip thread, Nithi's connection is more than as a shareholder of A49, he established A49 some 24 years ago and is the owner (
source - Thai language only)
Via the same Panthip thread, we have another
Thai Rath article which I have summarised below:
Today (October 22nd), OKMD chairman Apinan Poshyananda said the merged new name will be called Thailand Discovery & Creative Center and led by Chai-anan. Apinaan stated that that TCDC had been "very successful", but had to be dissolved and the merger had to take place because its budget was slashed by 50% and could no longer continue operations at the Emporium and had to move.
Mr Sumet said that Chamchuri Residence Square was chosen from 7 different places as it was not charging rent for the first 3 years, but just the "building administration fee" of 250 baht a square meter for more than 2,000 square meters and it connected to the MRT and could attract the new generation. Mr Sumet said [actually it is in quotes, but I am just paraphrasing] Up until now, I was very impressed that TCDC was located in the Emporium and it had the same standard compared with central design centers around the world, for example New York, and the standard that TCDC set.
Mr Sumet denied he benefited from A49 company who selected the location. When asked what the plans for the TCDC in its new form, he said that there were no plans and would need to wait for the Board to meet first. "If you want TCDC to remain in its current location, you should get Pansak, the old Chairman of TCDC and OKMD, to tell Thaksin to buy it".
Additional reports state that the cost of the move is 150 million baht and there additional costs of 276 million baht, but the old venue cost just 200 million baht and had only been used for 2 years.
The project has been criticised on Pantip and has the most comments at more than 300 comments and they mostly attack the decision.
COMMENT: I am sure some of you are thinking, what is TCDC? More at the end of this post* on what it is and its founding. Some comments and thoughts are below - the figures between Prachatai/Thai Rath/Pantip vs The Nation/the Bangkok Post/Manager vary so it is difficult to know which figures/amounts are correct.
First, why is the interim government making this decision? Couldn't it have left the decision to the newly elected government? Why the urgency? The new building is not even finished yet and some reports suggest it is not scheduled to be opened until May 2007 - the same time the old contract runs out. One hopes there is no delay. The 5 million baht a month and 370,000 baht a month director's fee seem high, particularly the director's fee, but was this sudden action necessary. Also, according to the
Bangkok Post, the director's fee is only being cut by 30% so we are not talking that much money especially since the size of the place being managed has fallen by 50%.
Second, there seems to be a large reduction in size from 4,490 sqm at the Emporium for the TCDC alone to the more than 2,000 sqm ( Pantip says 2,562 sqm) at its new location, but the move is very expensive and it comes after 200 million baht was initially spent on TCDC 2 years ago? Is it really worth it now?
Third, was it really that expensive with a budget of 145 million baht per year? TCDC also earns money from its activities of the restaurant, members fees, renting of exhibition venue etc - quoted as 76 million baht
here (assume this is per year) so won't revenue also decrease given they have half the space? If so, this should be factored into any supposed savings - unsure whether it is factored into the 400+ million baht, but it would seem difficult as we have no details on what services will be offered at the new venue.
Last year, even the notoriously anti-Thaksin
The Manager had a very
positive article on the TCDC. The article even praised for the TCDC on its low cost. It compared to a similar project in Singapore which cost 6 times as much to set up (200 million baht vs 1.2 billion baht).
NOTE: The head of TCDC at that time was Pansak who was a close advisor to Thaksin, but had been very close to The Manager's Sondhi in the past and associated with his media company, The Manager Group. Then again Thaksin was close to Sondhi as well and well that didn't stop any Sondhi criticism of Thaksin.
NOTE: Of course,
The Manager is not so positive on the TCDC project now, but then again one of its columnists Chai-anan will be taking over as the new head.
Fourth, as noted in the Pantip thread, Nithi's connection is more than just as a shareholder of A49. He established A49 some 24 years ago and is the owner (
source - Thai language only). One blogger
states he is also the largest shareholder. I haven't been able to confirm this yet, but last year, Bangkok Biz Week sourced a quote from Nithi and
stated he was the Chairman of A49 so he certainly has or had some connection with the company.
Fifth, it is good that rent is free for the first 3 years, but a 250 baht per square meter fee for "building administration fee" [
kah suan glahng] is very high compared to average condos in Bangkok where friends tell me is usually about 20-30 baht per square meter - yes there is a difference between the two and services are not directly comparable, but there is still a big price difference. This seems to suggest the rent is not "free" and I wonder what the rent will be for the final 3 years -
this Manager article mentions it will be a "government rate" without actually saying what this figure will be. There is mention in another
Thai Rath article that they will save around 40 million baht in rental each year - not an insignificant amount - but we do have the added 426 million baht to make up. It is unclear whether this figure is for the first 3 years or the final 3 years and whether it also includes the building administration fee. But lets say the rental fee is 600 baht a square meter - which is still cheap given the location - added together with the building administration fee of 250 baht a square meter and rental savings would be, the total rental cost including the building administration fee would be 2,177,700 million baht a month. Yes, a saving, but the vagueness over the rental fee is surprising and makes me wonder if it was that cheap, wouldn't they tell us? It seems the high building administration fee significantly subsidies the rent so it is important the total "rental" costs are compared.
Sixth, the current budget of OKMD is not actually 2 billion baht as
The Nation states/implies. In 2005, the budget was 120 million during the planning stage. This increased to 2.251 billion during the construction in 2006 and the budget reduced to 1.069 billion in 2007. This will drop to 810 million baht in 2008 (
source - Thai language only). Also, are the moving costs included in the 810 million baht budget figure?
*TCDC has been
described as:
Asia's first design learning and resource facility, the Thailand Creative and Design Centre (TCDC), was established to foster the country's creativity and inspire innovative ideas among design professionals and entrepreneurs. TCDC is part of the Thai government's attempt to build Thailand as a knowledge-based society under the supervision of the Office of Knowledge Management and Development.
According to Pansak Vinyaratn, Chairman of the TCDC, Thailand can no longer compete with other countries in terms of lower labour costs. "To maintain competitiveness in the global market, we need to capitalise on creativity in designing products and services to better meet with market requirements. Thailand has to further boost export revenues in a bid to keep its trade position in surplus," he said. "To be able to achieve these targets, we need to make knowledge more accessible to people, that will inspire their creativity and enable them to develop their product originality. The TCDC is the source of knowledge and self-experience with an atmosphere that stimulates imagination and creativity."
The 4,490 square metre TCDC is located on the sixth floor of The Emporium Shopping Complex, and houses state-of-the-art facilities like the largest design library in Asia with over 15,000 design books, related publications, as well as a large selection of films, video and other multimedia work. There's a permanent exhibition that provides basic design knowledge from all over the world and leading design centres, a 130-seat convention facility, a creative space for new generation designers to display their work at no expense, a shop and a restaurant.
TCDC's
2006 report (PDF) - which is worth a read to give you a good idea on what the TCDC does and how they operate - provides additional details of how it was set up:**
The establishment of the Thailand Creative & Design Center (TCDC) was approved by the Thai cabinet on 2 September 2003. As one of the human resources development projects, such as the National Center for the Gifted and Talented and the Thai Knowledge Park, that were being initiated at that time, the Prime Minister established the Office of Knowledge Management and Development (OKMD), according to the Royal Decree Establishing the Office of Knowledge Management and Development (Public Organization) B.E. 2547 issued on 4 May 2004. The OKMD is responsible for devising human resources development strategic plans, by building the knowledge base that will lead to the enhancement of Thailand's competitive advantage, and managing human resource development projects. TCDC was officially established on 18 June 2004 as an organization under the aegis of the Office of Knowledge Management and Development (Public Organization) under the Office of the Prime Minister and funded by the Bureau of the Budget.
Some photos from a recent visit are available
here.
**While one should not judge a book by its cover and while it is not a government agency, just compare how professional and informative their report/profile is compared to anything you have ever seen coming from a Thai government agency. It is a bilingual report.