Creative Spark Ignites Thailand’s Digital Advance
For Torsten Jakobsen, Thailand is a rich creative environment steeped in traditions that endure today.
As CEO of M2, a global animation company that counts major brands such as LEGO, Disney, and Games Workshop among its clients, Jakobsen also oversees a studio in Bangkok’s upscale Thonglor district.
One of Thailand’s top facilities, M2 Animation Studio specializes in everything from storytelling, design, and modeling, to texturing, camera layout, animation, and effects. Its 200-strong family is a melting pot of experience from North America, Europe, and Asia.
“Operated with North American standards and Scandinavian sensibilities, we have the upper hand when it comes to our state-of-the-art equipment and modern data security,” said Jakobsen. “And with our informal international atmosphere and a healthy dose of Thai food and culture, it’s an easy task to attract top talent here from around the globe.”
Despite its relatively small size, Jakobsen was emphatic about Thailand’s animation industry measuring up with the world’s best – and that local talent is a major reason for this.
Thais have a natural creativity shaped by their country’s rich cultural heritage. Art and craft are an integral part of the national identity, from the vibrancy of traditional painting and sculpture to the lustrous gilding on temples. And these skills and techniques are being passed down to the next generation and blended with contemporary methods such as digital graphic design.
“There’s an enormous respect for craftsmanship here,” Jakobsen explained. “It’s ingrained in the culture and influences of young people going to into the art schools.
”With the country’s burgeoning digital economy, Thais are also more connected than ever and influenced by global trends and culture.
“They are so well oriented in western movies, in western culture,” Jakobsen said. “So, you don't have to explain a lot of things. What we're doing with content is for international clients. It's for Lego, it’s for Warhammer. But they understand the nuance, humor, and drama.”
Game On
Animation and gaming have seen real growth in Thailand in recent years, with significant improvements in its digital infrastructure complementing this thriving creative talent. Not only has this prompted foreign companies such as M2 to invest in Thailand, it has also encouraged the development of more homegrown businesses.
It has been a particularly positive time for gaming, with the number of Thai gamers surging by 40% since 2020, boosting game downloads by 20%[1] and generating more than $1 billion.[2]
A community of new game creators, developers and publishers has emerged as a result, supported by initiatives such as the Game Accelerator Program from the Digital Economy Promotion Agency (DEPA).[3] The aim is to help Thai gaming companies to meet international standards and challenge the dominance of games produced overseas with more titles designed and produced in Thailand.
DEPA, which was set up in 2017, has also been instrumental in harnessing public-private collaboration to boost innovation and adoption in key areas such as 5G technology to help to drive faster digitalization and economic growth. One example is the Thailand 5G Alliance, a network of government agencies, industry associations, and telecom operators and vendors, whose mission is to promote the country’s 5G ecosystem and increase uptake across as many business sectors and industries as possible.
In 2016, Chinese telecom giant Huawei established its regional headquarters in Bangkok, and now supports the adoption of 5G, cloud services, and artificial intelligence in key sectors such as healthcare. For instance, Huawei worked with the Department of Medical Services on the development of 5G-enabled technology that helped doctors remotely monitor and diagnose patients through telemedicine during the pandemic, which minimized the number of Covid-19 infections in hospitals.
Meanwhile, Amazon Web Services (AWS) recently announced plans for a $5 billion investment to bolster Thailand’s cloud infrastructure over the next 15 years. This will include the construction of data centers to support a new cloud-based regional hub that will give businesses access to advanced computing technology, and enable them to store data securely while providing even lower latency across the country.
Booming Internet Economy
The pandemic forced a dramatic surge in digital growth globally, as massive numbers of people shifted online to work remotely and consume a range of digital goods and services, from Internet shopping to enhanced mobile banking services powered by artificial intelligence. Companies were also forced to invest in digital solutions to reach these consumers and keep their operations running.
Nowhere has this been more apparent than in Southeast Asia, which saw an additional 60 million people become online consumers during this period, led by Thailand and the Philippines.[4] With its booming Internet economy projected to double to $363 billion by 2025,[5] what began as a reaction to a global crisis is now a permanent paradigm shift.
Thailand’s digital economy, which grew by 10% to almost $21 billion in 2020, is expected to rise to $53 billion by 2025.[6] This growth is underpinned by a vibrant startup scene that has enabled local e-commerce, entertainment, and food delivery platforms to benefit from this post-Covid-19 explosion of online consumers.
Last year, Thailand celebrated its first unicorn as Flash Group, an e-commerce logistics and delivery services provider, raised $150 million from Series D+ and E funding, taking its total value to more than $1 billion.[7]
Driving Investment, Inspiring Talent
To boost the competitiveness of its digital industries, Thailand Board of Investment (BOI) has introduced various incentives to attract high value-add investments from local and foreign investors, including tax “holidays” of up to eight years for digital services, content, and software.[8]
Thailand is also tapping overseas expertise to support its own.
It recently launched a new visa to make it easier for international talent, notably from key sectors of the future such as digital technology, to live and work there.
The Long-term Resident (LTR) program[9] will allow successful applicants to stay in Thailand for up to ten years and enjoy benefits that will make doing business easier – from hiring foreign employees, to streamlined immigration rules.
The Next Digital Powerhouse
Thailand was already on the path to digital transformation, making significant progress with the development of its infrastructure, but the pandemic quickened the pace.
Its digital economy continues to grow as a result, fueled by the demand for digital products and services such as e-payments, which has become the preferred choice of financial transactions for most Thais.
Now the government is looking to areas like cloud computing and big data to power the next phase in its journey towards becoming the world’s next digital powerhouse. For instance, Thailand’s emerging data center market is expected to grow by almost 8% annually over the next few years, driven by high demand from financial services, automotive, retail, and its content sectors.[10]
An economy built around innovation and technology that can harness the unique creative environment that compelled a world-class global company like M2 Animation to make Bangkok its home in Asia, will put Thailand on a more sustainable pathway to a brighter future.
Related article: Making Thailand Your Home: New Visa Tempts 'High-Potential Foreigners'
