Govt to set up venture capital fund to support 'digital economy'

A NEW FUND will help ensure the successful creation of a “digital economy”, according to Information and Communications Technology Minister Pornchai Rujiprapa.

He said this Digital for Economy and Society Fund would act as a venture-capital fund to support the creation of innovations.

The Cabinet last week approved eight draft bills related to the development of the digital economy, including one for the Digital for Economy and Society Fund. Another one aims to amend the roles of the National Broadcasting and Telecommunication Commission. 

The money in the NBTC’s existing fund for research and development will be transferred to the new Digital for Economy and Society Fund, according to this legislation. The NBTC’s R&D fund currently holds more than Bt20 billion.

Pornchai said an upcoming Digital Economy Fund Committee would issue regulations to set clear criteria for how the fund is allocated. It will also have to report its performance to yet another panel to be set up by the military regime, the Digital Economy Committee, as well as the existing National Economic and Social Development Board and the Office of the Auditor-General, to ensure efficient expenditure.

According to the Digital for Economy and Society Fund bill, money can be granted or lent to state or private agencies to invest in developing a digital economy. The fund committee can provide financial support to any activities it deems appropriate if approved by the Digital Economy Committee. 

The fund committee will comprise eight members chaired by someone who knows how to manage such funds. Of the other seven members, two will be experts in financial and fiscal policy, four will have expertise in digital technology, and one will be the director of the upcoming Digital for Economy and Society Department. The members will have terms of three years. They can be reappointed after the first term ends but cannot stay on for more than two consecutive terms. 

The government will contribute seed money to the fund, as well as including it in the annual budget, while the other money will come from the NBTC’s spectrum licence fees, business licence fees, and donations.

A committee evaluating the fund’s performance will also be set up. It will have seven members, who will be handpicked by the Cabinet from various fields, such ICT, finance, and legal. 

The Cabinet approved a bill establishing the Digital Economy Committee last month. The committee, which will be chaired by |the prime minister, will be made |up of around 39 members, mostly representing state agencies. The |representatives from the private |sector will be from the Thai Cham-ber of Commerce, the Federation |of Thai Industries, the Thai |Bankers’ Association, and the ICT Council. 

Pornchai admitted that the NBTC would lose some of its authority under these new digital-economy bills. 

He said state telecom agencies should be allocated spectra so they can provide public services. The digital economy committee will decide which spectrum bands would be assigned for public use and which for commercial use.

If TOT and CAT Telecom are assigned spectra for public use, they will not be able to use them for commercial purposes, he said. If they need spectra for commercial use, they will have to compete for them in auctions or other allocation processes to be determined by the NBTC.