BOI reassures foreign investors that investment policy remains unchanged
Deputy Prime Minister and caretaker Energy Minister Supattanapong Punmeechaow has instructed the Board of Investment (BOI) to engage with foreign investors to assure them that Thailand's investment policy remains unchanged and will remain consistent even under the upcoming new government.
"We have assigned the BOI to expedite engagement with investors and ensure their confidence during this period of waiting for the new government. Thailand is still well-prepared to accommodate investments from around the world," Supattanapong stated, adding that
investment promotion policies of various political parties in the past did not significantly differ in their key objectives, such as promoting new industries, smart electronics, addressing climate change, clean energy, and engaging in trade cooperation through Free Trade Agreements (FTAs).
Interest from Korean and Chinese investors
Feedback on the recent investment promotion roadshow in South Korea shows that South Korean investors are interested in Thailand's target industries, including electric vehicles (EVs) and electronics.
Regarding the various measures to support investments from foreign countries, the BOI has been tasked with examining the alignment of investment promotion strategies with investor demands before presenting them to the incoming government. The objective is to ensure a smooth continuation of Thailand's investment policies.
Additionally, it was recently announced that investors from China are preparing to submit additional requests for investment promotion in the EV and bioplastics industries. The BOI has been assigned to evaluate the final benefits of these requests.
Supattanapong also acknowledged the need to sustain economic expansion during the transition to a new government. The economic indicators have gradually improved, including consumer confidence, while inflation has decreased. For instance, electricity tariffs were reduced in May, providing some cost of living relief to the public.
“The current role of the government is to sustain and affirm Thailand's potential, fostering investor confidence in future investments. Various benefits should be prepared to meet investors' satisfaction," he said.
The National Economic and Social Development Council (NESDC) estimates economic expansion in Thailand of between 2.7% and 3.7% this year with significant support coming from the recovery of the tourism sector.
Moreover, continuous expansion in domestic consumption and investments, both from the private and public sectors, is expected. However, the value of exports in US dollars decreased by 1.6%, while the average inflation rate is projected to range from 2.5% to 3.5%.
In terms of the macroeconomic policy for the remainder of 2023, the NESDC suggests giving importance to driving export-oriented industries, promoting private sector investments, supporting the recovery of tourism and related services, ensuring agricultural production and farmers' income, and maintaining economic and political stability within the country.
