Despite the fact that difficult political situation has hindered business investment in Thailand, investing opportunities still can be seen in this area. In fact, Thailand is probably the area that embraces surveillance security the most.
Tourism lights up Thai security industry
Despite the fact that difficult political situation has hindered business investment in Thailand, investing opportunities still can be seen in this area. In fact, Thailand is probably the area that embraces surveillance security the most.
Tourism is among the most important and profitable industries in Thailand, as this beautiful country provides a paradise-like resort destination for international visitors. Since sightseeing industry is crucial for Thailand's economic development, there is no reason for the government to cut back security budgets on this sector.
As a matter of fact, city surveillance has been one of the key policies in Thailand. The numbers of taxi installing surveillance camera has been increasing over past few years.
In order to provide a safe touring environment for the visitors, Thai government has been dedicated to crack down on drug dealing activities for years. The campus and local are strictly required by the government to install surveillance equipment for monitoring on unlawful deeds. This demand from the government indicates huge business potential in this area.
Furthermore, as this exotic destination has become top choice when it comes to buying villa and private residence abroad, residential vertical is calling for more secure promises. On the other hand, retail such as shopping mall and restaurant is showing unlimited business potential as well.
Price is the key to Malaysian security market
For the foreign distributors, it is crucial to supply an ideal price to the end users in Malaysian security market. When it comes to deploying security devices, most of the users in this area put price before advanced technology and services. In addition, the goods and services tax (GST) is scheduled to begin on 1st April 2015 with tax rate of 6%. A huge impact to the market can be expected. For these and other reasons, this is a harsh environment for international systems integrators to gain the access to the market.
Possibility for HD-over-coaxial
Good news is that IP system, so far, only takes up about 30% of the security market in Malaysia. Many users are still sticking to analog systems, and this situation implying that fact that solutions such as AHD, ccHDtv, CVI, and TVI will be the only choices when updates required.
Newbie investors: Tips to keep in mind
If you are a new comer to South East Asian security market, here are couples of things that you need to know before any bold movement:
1. Governmental projects and low-end market is not the best choice that asian manufacturers could have. Governmental projects are mostly too hard to apply for when you do not have strong connection with local market; low-end market is usually full of surprising low-price products that most of the professional distributors cannot afford to provide. But, hey, there is still a market for those under-priced goods. Don't consume all your strength in this chaos.
2. Making sure that you are able to provide more than products. Foreign investors are usually confronting the challenges that they are not able to provide prompt services in foreign market. If you are determined to step into South East Asian security market, it is important to supply end users reliable system integration and after-sale services. You have to cover every part of the business.
* For exhibitors' informaiton, Secutech ASEAN will be held on 26-28 November 2014 in Bangkok, Thailand.