BoI To Extend Thailand Investment Year

[george]

BoI to extend Thailand Investment Year

BANGKOK: -- The Board of Investment plans to extend its Thailand Investment Year, to give a boost to mega-project-related businesses.

Such firms are expected to recover next year in line with implementation of the government's stimulus package and Thai Khemkhaeng (TKK) campaign.

"Some sectors promoted under the Thailand Investment Year have not been successful, mainly because they're tied to the government's stimulus package. Hence, we think we should continue it into next year, especially for mega-project-related businesses, in order to support upcoming investment applications in construction and dual-track systems," said secretary-general Atchaka Sibunruang Brimble.

The campaign, which was launched last year and scheduled to wind up at the end of this year, is aimed at maintaining the country's investment level amid the global economic crisis.

It focuses on promoting investment in six sectors: energy-saving and alternative-energy businesses, hi-tech businesses, environmentally friendly materials and products, mega-projects-related firms and hi-tech agricultural-material-based companies.

The sector submitting the most applications over the past two years was energy-saving and alternative-energy businesses, Atchaka said.

"We may not extend our special privileges for alternative-energy businesses, because the operators have become more aware of the necessity for them to adapt. However, we'll discuss it some more before making a proposal to the board at the beginning of next year," she said.

Apart from mega-project-related investments, she said the extension would cover some investment promotions just announced in the third quarter, such as nano-materials production, completely built-up or completely knocked-down houses and serviced industrial estates.

After yesterday's formal opening of the BoI's One Start One Stop Investment Centre in Bangkok's Chamchuri Square yesterday, Prime Minister Abhisit Vejjajiva said the government had targeted growth in gross domestic product (GDP) of 3-3.5 per cent next year, while for this year it would contract about 3 per cent.

"Our GDP projection is reasonable. However, if GDP this quarter is better than expected and our stimulus packages are efficient, next year's GDP may expand more than we've targeted," he said.

Based on Abhisit's GDP projection, Vice Industry Minister Sorayud Petchtrakul said the BOI expected a 25-per-cent increase in investment applications next year, to Bt500 billion. The surplus will come mainly from the government's TK spending.

"Investment has started to return this quarter following a higher use rate and higher export. However, we've set a conservative target of Bt500 billion, because we want to make sure investment does indeed recovered in next year's first two quarters," he said.

However, he admitted large projects, particularly petrochemical ones, would be stagnant until the Map Ta Phut conflict in Rayong province was resolved.

-- The Nation 2009-11-24

[newsfooter][/newsfooter]