Fostering Thai–Taiwanese Exchanges: Thai–Taiwan Business Association President Liu Shu-tien

In 2016, the Thai‡Taiwan Business Association (TTBA) and the ASEAN Trade Promotion Association (ATPA) signed an ASEAN‡Taiwan memorandum of understanding, under which the two sides agree to cooperate to systematically promote trade and investment between the business communities of ASEAN and Taiwan. TTBA president Liu Shu-tien explains that the agreement, which the TTBA entered into in support of the government’s New Southbound Policy, covers items such as providing information on mutually beneficial commercial investments, helping one another promote outstanding up-and-coming businesses, and fostering positive business sentiment in Taiwan and ASEAN. He adds that the agreement will help Taiwanese businesses quickly obtain information on trade and investment opportunities, and gain footholds throughout ASEAN.

Liu has suggested that Taiwanese business associations work together to create a list of Taiwanese firms operating within the region, thereby making it easier for them to share their resources and develop new businesses.

He notes that Thailand is currently working on a number of large infrastructure projects, including nine major roads, three pan-Asian railways, and a high-speed rail system, the completion of which will further spur the country’s already huge domestic demand. Liu says that Thailand’s strong automotive industry also offers nearly unlimited business opportunities.

The Thai–Taiwan Business Association has inked an agreement with the ASEAN Trade Promotion Association which will foster trade and investment between Taiwan and the ASEAN member states.

Policy recommendations

Liu also recommends that the ROC government implement visa waiver programs at an appropriate level to residents of some ASEAN countries, establish university-level language departments for ASEAN languages, strengthen the cultivation of professionals in ASEAN-­related fields, and establish offices in each ASEAN nation with the express purpose of supporting the New Southbound Policy. Liu further envisions sending the directors of these offices “into the field” every three months so they remain up to date on local conditions.

Liu bases some of his suggestions on how he’s run his own  company. He explains that when the company had a hard time finding workers in Thailand who spoke both Thai and Mandarin, he sent employees to the Bangkok airport to recruit technology workers who had just returned to Thailand from Taiwan, and it worked. He argues that the ROC government and Taiwanese businesses should be making similar use of the hundreds of thousands of Thai technology workers returning home to Thailand every year.

Liu argues further that the government should help Taiwanese businesses evaluate investments by providing them with reports covering investment-related issues in ASEAN nations, such as the political and economic environment, infrastructure, labor quality and costs, and whether the countries provide tax breaks; it should offer larger incentives for Taiwanese firms to list on the Taiwanese stock market, including tax holidays and subsidies to help cover consultation fees and other costs associated with preparing to list; and it should strengthen communications and exchanges with the Taiwanese business community, especially in relation to taxes, environmental protection measures and security guarantees.

Thai–Taiwan Business Association president Liu Shu-tien (third from left) is building for the association’s future by passionately promoting the work of its youth-oriented affiliate.

Built from scratch

Originally from Chang­hua County, Liu Shu-tien lost his father at an early age. His mother raised him to be honest and steadfast, which served him well when establishing his career in business.

But Liu’s childhood poverty created ­difficulties with his education. During his elementary- and middle­-school years, he had to walk an hour to and from his school bus stop, and also had chores at home and in the fields. He moved to Tai­pei after completing his military service, and found work there as a salesman for a company making stainless-steel cookware.

He recalls earning NT$50 for each delivery he made from Xi­men­ding to Song­shan in 1969, when a typical salary was just NT$1,000 per month. He put his all into the job, which was his first. He became the company’s top salesperson in just three years and was then promoted to manager. Liu says that he worked as if the company were his own: while other employees marked time for eight hours per day, he always sought to do more than merely eke out a living, and clocked as many as 16 hours a day.

He went on to found his first company in 1975, investing NT$15,000 to start a venture that made stainless-steel cookware.

Once Liu’s domestic sales began to show steady growth, he began moving into overseas markets. He invested in expanding the company’s factory and buying new equipment, and worked unceasingly to develop new products. The strategy worked: sales grew rapidly and the company’s annual revenues reached NT$20 million. In 1981, Liu went on to start First Enamel Industrial Corporation. He expanded his factory again three years later, while also purchasing a kiln from Europe and automating his production equipment to improve product quality, develop his brand, and increase his overseas business.

The Youth Career Development Association of the ROC recognized him in 1985 by naming him a young model entrepreneur.

Liu continued his expansion in 1986 by opening an enamel housewares factory in Indonesia the following year, but ultimately gave it up when profit margins became too thin. His next move was to support his efforts in Southeast Asia by investing NT$150 million in the establishment of a subsidiary, Thai First Enamel, in Thailand.

Liu Shu-tien believes in the importance of production-line management, stressing discipline and efficiency.

Passionate about helping

An active participant in organizations such as the Taiwanese Chamber of Commerce and the Rotary Club, Liu has always made a point of giving back to the community. He founded a hometown association with that in mind. The group’s objective is to connect Chang­hua natives living in Thailand with one another to better enable them to support those in need. Liu has been working even harder for Taiwanese businesses, Taiwanese expatriates, and the neighborhoods in which they live and operate since becoming president of the Thai‡Taiwan Business Association in May 2015.

Liu says that the TTBA brings charities together every year to provide scholarships to disadvantaged students in Northern Thailand’s Phetchabun Province. In 2016, the program aided 156 students.

When Phetchabun Province suffered severe flooding in 2002, Taiwanese businesspeople and their families who were in Thailand at the time hurried to the area to offer monetary and material aid. The TTBA has visited the province in every year since to distribute scholarships to students from disadvantaged families. Last year marked the 15th consecutive year it has done so.

TTBA also raised money for relief efforts when an earthquake struck southern Taiwan in February 2016. Taiwanese in Thailand donated THB14.4 million in just two weeks in a tangible show of support and affection for their homeland.

Liu put years of hard work into building a successful business, but in recent years he’s left the running of the company to professional managers and focused instead on being the president of TTBA and a grandfather.

Liu says he’s adhered to one key principle throughout his many years in the volatile world of business: “Be bold in your hypotheses, and cautious in your testing of them.” He picked up the idea some 50 years ago from ­Zheng Bing­quan, then the principal of what is now National Cao­tun Commercial and Industrial Vocational Senior High School, and made it his guiding principle. 

Reflecting on his past, Liu says he is very grateful to his wife for her sacrifices and assistance, which have helped him over many hurdles.

Looking to the future, he says he aims to serve as a bridge, encouraging Thai‡Taiwanese exchanges and working with the ROC government to promote its New Southbound Policy.

Liu Shu-tien founded Thai First Enamel to cultivate the Southeast Asian market.

Giving back to society is part of the Thai–Taiwan Business Association’s mission. The group has awarded scholarships to students from disadvantaged families for 15 consecutive years.

Liu Shu-tien puts quality first, and it has paid off. His products are popular with consumers in the US and Europe.

TTBA president Liu Shu-tien (second from left) poses for a photo with representatives from the ASEAN Trade Promotion Association after signing the ASEAN–Taiwan memorandum of understanding.