Tag Archive: policy

  1. 2018 BOI Policy Announcements

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    1. SMEs

    To increase competitiveness including the extension of the promotional period for SMEs of the scheme to 30 December 2019, there will be up to 100 business activities and relaxed requirements and conditions. The BOI made the decision to offer more attractive incentives.

    For example, SMEs operating any activities that improve competitiveness including research and development, advanced technology training, IP licensing fees, product & packaging design, will see their investment and expenses conditions significantly relaxed to enable SMEs to have better access to enhanced incentives. Promoted SMEs are allowed to utilize used machines available in Thailand in their projects up to a maximum value of 10 million baht.

    BOI Thailand


    2. Environmental concerns

    The Board of Investment has taken measures to promote energy conservation, alternative energy utilization or reduction of environmental impact; improvement in production efficiency by upgrading and replacing machinery for manufacturing; investment on research and development and engineering designs for efficiency improvement and investment that is beneficial to agro-industry’s upgrade towards international standards. Application of all these measures must be submitted by December 30, 2020.

    III. Additional rights and benefits

    The Board of Investment decided to grant additional rights and benefits in Groups A1 and A2 (the groups are explained in detail below). To promote the utilization of modern machinery and robotics system for manufacturing, additional rights and benefits shall be granted for activities in Group B. Applications should be submitted by December 30, 2020. This announcement shall be effective from September 15, 2017, onwards.

    A1: Knowledge-based activities focusing on R&D and design to enhance the country’s competitiveness.

    A2: Infrastructure activities for the country’s development, activities using advanced technology to create value-added, with no or very few existing investments in Thailand.

    B: Supporting industry that does not use high technology, but is still important to the value chain.

     

    More specific information from the BOI is expected soon. Please contact us if you would like any additional information [email protected]

  2. Thailand’s Economic Outlook – Fiscal Policy Office increases Thai GDP 2013 projection to 5.3%

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    In Thailand’s Economic Projection for 2013 (as of March 2013), Mr. Somchai Sujjapongse, director general of the Fiscal Policy Office, announced that the Thai economy in 2013 is expected to grow steadily, by 5.3 percent (the average of the expected range of 4.8 – 5.8 percent). This projection is an increase from the December 2012 projection of (5%) due to an expansion in domestic spending, especially goods consumption, the main driver of the economic expansion. Private consumption Mr. Somchai indicated, was expanding due to the measure to increase income, such as the increase in the minimum wage to 300 baht nationwide and the rice-pledging project.

    Public consumption has expanded in 2013 in response to the converted efforts of the government to accelerate the disbursement of the 2013 budget. In addition, domestic investment continues to be supportive to country’s economic growth this year. An expansion of private investment has been steadily accelerating due to the positive impacts of the government policies to promote economic recovery after the flooding in 2011, including measure to promote investment. Public investment is expected to be executed quickly this year by utilizing approximately 350 billion baht to invest in infrastructure that will restore the nation’s water management systems. External demand will also yield positive results for the exports sector this year, which is forecast to grow by 9.0 percent (expected range of 8.0-10.0) in response to the overall global economic recovery, notwithstanding the impact of baht appreciation to exports sector.

    Headline inflation in 2013 is forecast at 3.0 percent (or within a range of 2.5 – 3.5 percent), primarily due to the increasing price of fuel and commodities in the global marketplace. The trade balance this year is projected to record a smaller surplus than in 2012 as import value is expected to outpace exports. This will consequently result in a small current account surplus of 0.4 percent of GDP (within the expected range of (-0.5)-(0.5) of GDP).

    Director-General Somchai added, “For economic projection, it is necessary to closely monitor risk factors such as the recent fluctuations of the baht, economic recovery, and growth rates in trading partners. In particular, the US debt ceiling crisis and progress in reaching a solution to European sovereign public debt problems, as well as the potential drought on the agricultural sector and the impact on income of people living in rural areas.”

    Source: Board of Investment (BOI)