Somkid to lead roadshow seeking investments in 10 'future' industries

Speaking at a seminar yesterday titled “Thailand Economic Outlook 2016” organised by Bangkok Biz newspaper and NOW 26 Channel, Somkid also urged Thai businesses to go ahead with their investment projects in 2016.

“Next year is the year of investment. We’ve already provided a lot of incentives and confidence has returned due to various stimulus measures implemented in the past three months. 

“If the private sector does not invest next year, then what are you saving the money for?” Somkid asked. The Cabinet on Tuesday approved a list of 10 industries as Thailand’s new economic growth engines, including next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels; and biochemical, digital and medical sectors.

The Finance Ministry is currently working on details of extra tax and non-tax incentives for the 10 targeted industries. In order to attract investors, the incentives will go beyond the Board of Investment’s privileges that they already receive.

The measures could include the establishment of funds to support private investment, corporate income-tax exemption for 10-15 years and reduction or exemption from personal income tax for researchers or experts.

“The new economic S-curve [future industries] has been identified [for Thailand] and we will show and elaborate during the roadshow,” Somkid said.

Japan is one of the first destinations for the Thai economic ministers’ roadshow at the start of the new year.

Somkid said the private sector has to invest in order to increase the country’s competitiveness and for gross domestic product to expand. He believes the economy this year could expand more than 3 per cent due to stimulus measures worth around Bt500 billion.

“If GDP is to expand by 5 per cent, the private sector must invest more than 10 per cent of GDP per year,” he said.

The Office of the National Economic and Social Development Board revealed on Monday that it expects the economy to expand by 2.9 per cent this year and around 3-4 per cent next year.

It also revealed that private investment, which accounted for 15-20 per cent of the country’s gross domestic product, is expected to expand by 4.7 per cent in 2016 when compared to the 1.3-per-cent expansion forecast for this year and contraction of 2 per cent in 2014.

Somkid denied that the economic stimulus measures introduced under his guidance since August are “populist”, as the actual cost of the measures are expected to be around Bt60 billion but they will lead to an estimated Bt500 billion worth of money circulating in the economic system.

Somkid also hinted that he would use the money gained from the 4G spectrum licence auctions to support the government policy to uplift the local economy by upgrading the quality of local products and investments to improve local tourism. 

The National Broadcasting and Telecommunications Commission auctioned off two 1800MHZ licences on November 11, which gained a total of more than Bt80 billion. It will hold auctions for two 900MHz licences on December 15.