Thailand’s Kingsmen CMTI banks on Cambodia, Myanmar results
Thailand-based Kingsmen CMTI Plc is stepping up its services in Myanmar and Cambodia, amid business expansion by both Thai and foreign investors in the two countries, said Sunisa Ratnanenya, the company’s deputy managing director/exhibitions and museum, alternative marketing architecture and engineering.
The company is a provider of integrated solutions covering a full range of services from ideation, research and design, consultancy, project management and prototyping to fabrication, implementation and installation, construction, logistics support and after-sales services.
It is a joint venture between Singapore-based Kingsmen Group, a 10 per cent stake holder and Thailand-based CMTI Co Ltd, which owns 90 per cent of the company.
Globally, Sunisa said the Kingsmen Group has invested in 21 countries, including China, Japan, South Korea, India, Taiwan, Malaysia, the US, and some Middle East countries.
Kingsmen CMTI Plc is expanding in Myanmar and Cambodia on its own, catering to the growing demand for decoration exhibitions and interior design work at commercial properties such as luxury hotels, retail premises and office buildings in the two countries.
The Myanmar and Cambodian governments have offered incentives and widened access to foreign investors.
Kingsmen CMTI made its entry into Myanmar five years ago, setting up a subsidiary with a registered capital of $300,000.
The company generated 27.5 million baht ($876,000) in total revenue at the end of last year, a jump of 43.97 per cent from 19.1 million baht in 2017.
Most of its customers in Myanmar are Thai investors planning to expand their hotel and retail portfolio in the country, accounting for 80 per cent of the company’s total revenue with income from decoration and design of exhibition booths making up the balance.
In Cambodia, the company established Kingsmen CMTI (Cambodia) Co Ltd last year with a registered capital of $300,000.
“We have strengthened our position in Cambodia with the new investment in view of Thai and global brands expanding their presence in the country, including Ralph Lauren, Starbucks, Pizza Company and S&P.
The openings of new business premises will come with growing demand for the company’s services in the areas of decoration, construction and design,” Sunisa said.
Kingsmen CMTI (Cambodia) Co Ltd director Nontwaris Jatepiyawat said the company generated total revenue of eight million baht in its first year of operation.
It is looking to achieve 20 million baht this year and 30 million baht next year amid strong growth in major Cambodian cities and towns Phnom Penh, Siem Reap and Sihanoukville.
With the expansion in Myanmar and Cambodia, Kingsmen CMTI Plc recorded total revenue of 2.13 billion baht at the end of last year, an increase of 86.8 per cent from 1.14 billion baht for 2017.
“The surge in revenue can be attributed to our robust business performance in Thailand and overseas,” Sunisa said.
Jirawuth Suwanna-arj, director and minister counsellor (commercial) of the Commerce Ministry’s International Trade Promotion Department, said foreign direct investment in Cambodia has been growing strongly since 2013.
In 2017, the Kingdom received $629.7 million in foreign direct investment, up 9.12 per cent from the previous year.
Foreign investment reached $113.9 million in the first quarter of the year, a 33.63 per cent increase from same period year-on year, according to a report from the Cambodia Investment Board.
“China was the first country to expand investment in Cambodia, followed by South Korea and the UK. Thailand ranked ninth in terms of foreign investments in the country,” Jirawuth said.
“Cambodia remains attractive to foreign investors although the EU will revise its [Everything But Arms preferential trade agreement] for the country this year,” he said.