Diversification into other Businesses

Having attained success in the business of rice trading and struggling to persist in the face of the government's plan to terminate the policy of authorizing the Chinese to collect various taxes in exchange of a fee, which had previously meant a major source of wealth for them, many Chinese merchants in Thailand proceeded to diversify into and compete for the leading role in other modern besinesses against western businessmen. During the short period from 1907 to 1913, many branches of business started by the Chinese, such as shipping lines, banks and insurance companies, had to close down in no time due to lack of knowledge and experience as well as inadequate operating capital to compete against those run by westerners. Be that as it may, experience gained in the fierce competition requiring extreme perseverance on the part of the pioneer generation provided an important lesson for the younger. In the end, it was Chinese businessmen who have since the end of World War II onward managed to retain solid leadership in an array of modern businesses in Thailand ranging from import and export, banking, financial institution, insurance, transportation and navigation.