Thailand
Thailand: Package needed to spur interest in S-curve
The Board of Investment (BoI) is being urged to implement more proactive approaches to promote investment, especially in targeted industries.
Danucha Pichayanan, secretary-general of the government’s planning unit, the National Economic and Social Development Council (NESDC), said the BoI should offer a special promotional package for investment in targeted industries to make it more enticing for foreign investors.
“The special package may be offered on a case-by-case basis to draw companies Thailand really wants to expand here this year and next, especially in the new S-curve industries,” he said.
The BoI now offers an exemption for corporate income tax for 5-8 years for 12 targeted industries, including five new S-curve industries: robotics, aviation and logistics, digital, biofuels and biochemical, and medical services.
The 12 targeted S-curve industries are: cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; defence; and education development.
The Centre for Economic Situation Administration (CESA) on March 26 approved a short-term action plan to draw foreign investment focusing on new S-curve industries.
“Existing promotional privileges are insufficient to attract investors now that other countries in the region also offer similar or more attractive privileges,” said Mr Danucha.
He said privileges particularly for foreign experts who work in investment projects with high technology and regional operating headquarters (ROHs) need to be upgraded.
Mr Danucha said existing Thai aviation laws that require Thai nationals to hold a 51% share in a company need to be tweaked to make the country’s aviation business more interesting for foreign investors, who are normally the owner of high technology.
He said the government is expected to conclude the fresh investment measures soon.
Prime Minister Prayut Chan-o-cha ordered an ad hoc committee at a cabinet meeting on April 7 to accelerate investments, adding related government agencies need to prepare assistance for investors and work quickly to tackle investment obstacles.
In February, the government established an ad hoc committee to handle investment acceleration and pledged to readjust investment privileges, existing laws, regulations and work permits to facilitate and attract investments, especially for advanced technologies.
The committee, headed by Mr Supattanapong’s adviser, ML Chayotid Kridakorn, former senior country officer and managing director for JPMorgan Thailand, is tasked with working on new investment privileges and improving regulations that stymie investment.
The committee aims to lure outlays for electrical vehicles, medical and wellness, smart electronics, and digital.
The new packages are expected to include not only income tax perks, but also steps to facilitate visa and work permit procedures.
Source: https://www.bangkokpost.com/business/2122303/package-needed-to-spur-interest-in-s-curve