But the incident in Cambodia was a good reminder to those looking to invest outside their home markets to be able to adapt to the local culture and sensitivities, for any misstep in this regard can be hazardous to the company and its country of origin as well.

One other thing that a lot of investors don’t realise is that they need to know the language and hire local staff in higher positions to be able to attract good talent which can help propel the company to new heights.

Certain foreign investors in Thailand and elsewhere in Asean still show a marked preference to hire people who are from the country where the investor originated, even when qualified local talent is available. We’re not just talking about westerners, though. For a Thai company investing in Vietnam, it wants top management to be Thais, and an Indian company investing in Indonesia will want the top management to be Indian.

This is good in certain aspects – a shared language can help the shareholders and the management communicate – but then it only discourages people with good talent to even apply to work in the company.

Having local people in top management is also good as it helps bring about a greater cultural integration between the company that is in a foreign land and the local community, which may be wary of the intentions of the investors and at times sceptical of the way they run their businesses.

Incidents in the region over the past few months are a good learning point for any investors who are looking to move out of their home countries. To chart their expansion strategy, they realise they must strive to be part of the local community, and making the new investment destination similar to home turf should be the overall strategy of the company as well.

 

 

Seminar slides