Thailand promotes investment in southern Muslim region

Reading Time: 2 minutes
Thailand_map5
Click to enlarge

Thailand’s Board of Investment (BOI) has announced new investment promotion measures that are targeted at the southern border provinces which are predominantly Muslim.

The new measures aim to encourage more investors to do business in the deep south of Thailand and stimulate growth of local investment, after the slowdown the region has faced because of unrest, the BOI said.

The agency has set criteria for stimulating investment in the southernmost provinces of Pattani, Yala, Narathiwat and Satun, as  well as four districts of Songkhla, namely Chana, Na Thawi, Saba Yoi, and Thepha.

The incentives include that entrepreneurs eligible for promotion will be required to have a minimum investment capital of 500,000 baht ($16,130, excluding cost of land and working capital). In the previous criteria, a minimum level of investment capital of one million baht was required.

Special tax incentives will be offered to activities that can be grouped into a cluster, in the same manner as those established in industrial estates. Moreover, entrepreneurs investing in the deep south will also be allowed to employ unskilled migrant workers in their promotional projects, according to the BOI.

According to BOI Secretary-General Udom Wongviwatchai, these measures will be offered to all types of business activities, which are entitled to exemptions on import duty on machinery and an eight-year corporate income tax exemption.

Companies investing in the deep south will also be eligible for 50 per cent reduction of corporate income tax for five years. Applications for investment promotion in the southern border provinces are accepted until December 31, 2014.

Statistics compiled by BOI show that, from 2004 to 2012, a total of 19 projects, worth $92.3 million, were granted promotional privileges in the three southern border provinces of Pattani, Yala, and Narathiwat. Most of these projects involved food processing and rubber products.

The government has a policy to develop the deep south into a halal food production hub and a processing base for rubber and oil palm. The region is regarded as a gateway to the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT). Thailand is preparing to link IMT-GT with other ASEAN partners.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Click to enlarge

Thailand’s Board of Investment (BOI) has announced new investment promotion measures that are targeted at the southern border provinces which are predominantly Muslim.

Reading Time: 2 minutes

Thailand_map5
Click to enlarge

Thailand’s Board of Investment (BOI) has announced new investment promotion measures that are targeted at the southern border provinces which are predominantly Muslim.

The new measures aim to encourage more investors to do business in the deep south of Thailand and stimulate growth of local investment, after the slowdown the region has faced because of unrest, the BOI said.

The agency has set criteria for stimulating investment in the southernmost provinces of Pattani, Yala, Narathiwat and Satun, as  well as four districts of Songkhla, namely Chana, Na Thawi, Saba Yoi, and Thepha.

The incentives include that entrepreneurs eligible for promotion will be required to have a minimum investment capital of 500,000 baht ($16,130, excluding cost of land and working capital). In the previous criteria, a minimum level of investment capital of one million baht was required.

Special tax incentives will be offered to activities that can be grouped into a cluster, in the same manner as those established in industrial estates. Moreover, entrepreneurs investing in the deep south will also be allowed to employ unskilled migrant workers in their promotional projects, according to the BOI.

According to BOI Secretary-General Udom Wongviwatchai, these measures will be offered to all types of business activities, which are entitled to exemptions on import duty on machinery and an eight-year corporate income tax exemption.

Companies investing in the deep south will also be eligible for 50 per cent reduction of corporate income tax for five years. Applications for investment promotion in the southern border provinces are accepted until December 31, 2014.

Statistics compiled by BOI show that, from 2004 to 2012, a total of 19 projects, worth $92.3 million, were granted promotional privileges in the three southern border provinces of Pattani, Yala, and Narathiwat. Most of these projects involved food processing and rubber products.

The government has a policy to develop the deep south into a halal food production hub and a processing base for rubber and oil palm. The region is regarded as a gateway to the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT). Thailand is preparing to link IMT-GT with other ASEAN partners.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid