Jetro urges BOI flexibility

Authorities should give time to existing businesses promoted by the Board of Investment (BOI) to make adjustments to fit in with the new policy, Jetro said.
The government should give tax breaks to local and foreign investors that build local facilities for electronic appliances that use more advanced technology, the Japanese agency has urged.
The BOI plans to revoke the promotion of low-technology, labour-intensive businesses.
Industry Minister Prasert Boon-chaisuk said yesterday after meeting with Setsuo Iuchi, president of Jetro Bangkok, that the BOI was reshuffling its investment promotions to be in line with the current situation.
“We want the policy adjustment to benefit all foreigners, particularly from Japan, who invest in Thailand. Whether the policy will be used for next year or not depends on the consideration of the board meeting chaired by Finance Minister Kittiratt Na-Ranong,” he said.
A ministry source said Jetro expressed three major concerns to the government about the new package: It should not have any significant impact on existing promoted investors, it should not be effective immediately in order to allow existing companies to prepare, and it should be outlined immediately to Jetro so that it can alert Japanese investors. The source said Jetro had suggested to the BOI that it promote the manufacturers of electrical appliances using more advanced technology or electronic equipment as its parts, as these product categories have seen greater demand.
The BOI expects the new investment-promotion policy will be published for implementation by the beginning of the new year. It will reduce the number of promoted companies from more than 200 currently to fewer than 100 by cancelling the privileges awarded to labour-intensive and primary processing companies, while targeting the creative industry, green and alternative energy, high-value business, tourism and health, and logistics services.