Somkid reassures investors of continuity on policies despite major events
IT WILL be business as usual for entrepreneurs and investors in Thailand despite the staging of what the government is calling three transition periods this year, said Deputy Prime Minister Somkid Jatusripitak, who is promising continuity in government policies.
Somkid told Japanese investors that the three transitions were the royal coronation of HM King Maha Vajiralongkorn, the general election next month and Thailand’s chairmanship of Asean this year.
He gave the reassurance to the investors in updating them on Thailand's political developments at an event in Osaka. He was seeking to persuade these investors in the government’s targeted industries to view Thailand as their long-term base.
More than 500 investors attended the event, entitled “Advance Asean – Japan”, which was staged by the Board of Investment (BOI) in Japan’s second city.
From May 4-6, the royal coronation ceremony of His Majesty the King will take place.
Thailand's oft-delayed election will be held on March 24, reflecting the country's path along the government’s political roadmap and “the seamless development continuity with the economic foundations”, including long-term national strategies and the Eastern Economic Corridor (EEC) development plan backed by legal commitments, Somkid said.
Applications for investment promotional privileges from the BOI in the EEC areas surged 130 per cent to 2.26 trillion yen (Bt680 billion) last year, compared with 960 billion yen (Bt290 billion) in the prior year. Investment in the EEC totalled Bt44 billion last year.
In later stages, the government will focus on the targeted industries according to the national industrial development plan, attracting funds into projects with high growth potential in line with global trends, Somkid said. Such projects will involve electric vehicles, the establishment of the Innospace centre, the EEC of Innovation (EECi) and the circular economy, which will use technology in resource management for optimal benefits, he said.
With the election having been scheduled, Somkid said he can promise policy continuity in major areas, such as Thailand 4.0 initiatives and the economic corridors in the Eastern and other regions.
“None of the political parties would be foolish enough to not continue the (government) policies, given their importance,” he said, seeking to build up Japanese confidence for the continuity in Thailand's development during a year marked by the three transition periods.
Chairing Asean under the concept of “Advancing Partnership for Sustainability” this year, Thailand will hold the Asean Business Investment Summit (ABIS 2019) in November, aside from the annual meetings of the Asean leaders.
Deputy Minister of Foreign Affairs Virasakdi Futrakul said that Japan and Thailand had long enjoyed good relations and Japanese investment had made great contributions to the country. More than 5,000 Japanese firms have invested in Thailand.
Last year, Japanese investment totalled US$2.2 billion and Japan was Thailand's second-largest trading partner with total bilateral trade of about $60 billion. That year, some 1.66 million Japanese tourists came to Thailand, while 1.13 million Thais visited Japan. The Japan-Thailand Economic Partnership Agreement (JTEPA) has been in place for 11 years.
For the future, both governments have discussed the promotion of Thailand's targeted industries - particularly in aviation, medical equipment, robotics and digital fields. This would help the economy to make strides in development. Japan is expected to gain from the manufacture of products for export to Cambodia, Laos, Myanmar, Vietnam and India, countries that have enjoyed economic expansion.
