BANGKOK, July 17 (TNA) – Thailand’s Board of Investment (BOI) has launched a major package to bolster local businesses and supply chains.
This initiative addresses investor concerns about potential US tariff hikes and global trade tensions, aiming to integrate Thai manufacturers into global networks.
BOI Secretary-General Narit Therdsteerasukdi cited rising investor anxiety and domestic competition as key drivers.
Approved by the BOI Board and led by Deputy PM and Finance Minister Pichai Chunhavajira, the “Measures to Enhance the Potential of Thai Entrepreneurs to Cope with the New World Era” focuses on two main goals: boosting Thai competitiveness and fortifying supply chains, while mitigating risks from US trade actions and strategically regulating investment to protect domestic industries. The package includes five sub-measures.
The plan significantly enhances incentives for Thai SMEs, offering an extended 5-year corporate income tax exemption (up to 100% of improvement investment) for operational upgrades. A pivotal measure promotes local content in EV and electrical appliance sectors; companies using certified “Made in Thailand” components receive an additional 50% corporate income tax reduction for two years.
The BOI will also tighten scrutiny of production processes to prevent benefit circumvention and mitigate trade risks. Investment regulation will increase, discontinuing promotion for solar panel manufacturing and automotive accessories, mandating Thai majority shareholding for furniture and bag businesses, and revoking promotion for downstream steel products due to oversupply.
New conditions for foreign personnel aim to create more local jobs and facilitate knowledge transfer. Manufacturing firms with over 100 employees must now employ at least 70% Thai nationals, with minimum income requirements for foreign executives and specialists.
Narit emphasized these strategies are vital for upgrading existing industries and developing new ones, ensuring Thailand’s long-term economic growth amid global trade challenges. -819 (TNA)
