Thailand eyes becoming regional trade centre
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The government is amending laws to convince foreign businesses to set up their regional headquarters here, Deputy Prime Minister MR Pridiyathorn Devakula said on Friday.
The move would enable the kingdom become a regional trading centre like Singapore, he said.
He told participants attending a seminar that the amended law would be forwarded to the cabinet for approval early next year.
If passed, it would help boost Thailand’s gross domestic product to between 56 per cent in the next two years and would not cause a bubble economy in the country.
The law would also help increase the role of Thailand’s economy in relation to neighbouring countries and is also designed to encourage Thai businesses to invest internationally, said Pridiyathorn.
Development in Thailand in the past has come from private investment. This has now reached saturation due to shortages of labour and land for investment and has resulted in a slowdown in investment since 2010. This has in turn affected and the country’s GDP, which has only grown by between 3 and 4 per cent, he said.
There is therefore a need to amend the tax system to facilitate foreign businesses wishing to set up regional operating headquarters in Thailand as well as to also encourage Thai businesses to invest abroad, MR Pridiyathorn said.
The government will invest in major infrastructure projects to cater to the “digital economy,” such as establishing a massive broadband network to assist businesses, he added.
