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Thailand: Lures for private imports cued
The government is set to launch fresh measures to stimulate private investment and encourage Thai companies to import more goods, in part to stem the strong baht.
Deputy Prime Minister Somkid Jatusripitak said he has already instructed the Revenue and Customs departments to devise additional incentives to entice more private investment and promote Thai companies to import more products.
“The new private investment stimulus measures should be proposed to the cabinet for approval as soon as possible,” he said.
Last year, the government introduced a relocation package, including tax breaks and special investment zones, to attract foreign companies seeking to move production because of the US-China trade row. The package played a key part in Chinese investment applications, which surpassed Japanese applications for the first time to be worth almost four times as much at 262 billion baht in 2019.
Of the total investment applications from China, roughly 160 billion baht were for projects in 12 targeted industries and general sectors, while 101 billion baht was for the high-speed railway linking three airports.
Japanese investment applications tallied 73.1 billion baht, while Hong Kong investors were in third place with a value of 36.3 billion baht.
The Board of Investment said total investment applications in 2019 stood at 756 billion baht from 1,624 projects.
That was 16.2% lower than 2018 applications, which were worth 902 billion baht.
According to the National Economic and Social Development Council’s report, the country’s private investment was forecast to grow by only 2.8% in 2019, down from 3.9% expansion in 2018 and 2.9% growth in 2017. This year the figure is forecast at 4.2%.
Mr Somkid yesterday chaired a panel meeting on the integration of the fiscal 2021 budget. He said the Southern Economic Corridor, Northern Economic Corridor and Bioeconomy Corridor are priority projects.
“The government aims to implement significant projects in three special economic zones through the fiscal 2021 budget,” he said.
The southern corridor’s core project is a 109-kilometre double-track rail project linking Chumphon and Ranong.
Mr Somkid said some budget slated to support the existing 10 special economic zones will be transferred to finance development of the southern, northern and bioeconomy corridors.
For fiscal 2021, the government will financially support just four SEZs: Songkhla, Mae Sot, Mukdahan and Sa Kaeo, he said.
Source: https://www.bangkokpost.com/business/1837504/lures-for-private-imports-cued