Finance Minister Pichai sees opportunities for Thailand on the world stage, opening the way for foreigners to lease land for 99 years to stimulate investment and revive the Thai economy.
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, said at the Daily News Talk 2024, ‘Thailand’s Next Step’, under the topic ‘Decoding… Opportunities for the Thai Economy’ that amidst the slowdown of the global economy, there are still regional conflicts among giant countries, competition in production costs, and relocation of production bases. However, Thailand still has opportunities because it is located in the center of many regions, especially the Middle East, where many large funds converge. Currently, there is an abundance of capital. Opening the market to India because the economy is still expanding rapidly and to attract foreign investment to invest in large projects, it should be possible to lease or use the right to the land for a long time. From the original 30-year lease, it should be exten
ded to 60-70 years because there are 2 types of land rights: ownership and use rights. Since large-scale investment must be extended for more than 30 years, it should be extended further. It may be necessary to improve the rights-based assets by setting up a central agency, SPV, to act as a mediator to take care of the land holding of foreign investors. Because in the end, foreigners cannot take away the privilege or ownership of the land. Therefore, this opportunity must be used for the remaining vacant land, up to 330 million rai, to attract investment.
Creating opportunities and attracting investment, we must be prepared to find factory locations, investment sources in target industries, and must amend the land allocation criteria to avoid obstacles. Facilitate doing business with foreign investors, develop quality labor. The National Economic and Social Development Board stated that GDP will grow by 2.5 percent in 2024 from 1.9 percent in 2023, while Thailand’s economic potential should expand by 3.5 per
cent. It is believed that the structure of the Thai economy can still be adjusted amidst the economic crisis, slowing down exports, and still not being able to compete fully in the market.
For the capital market, there is still a push from the Vayuphak 1 Fund worth hundreds of billions of baht, the Thailand ESG Fund, and other funds, while investors and foreigners are still investing because they hope for returns from the Thai stock index moving 1,700-1,800 points. Therefore, to create investment opportunities, hopes and dreams must be turned into real actions, resulting in tangible results.
Mr. Narit Therdsathirasakdi, BOI Secretary-General, said that in the past, the private sector has proposed 1,400 investment promotion projects, an increase of 60 percent, the highest in 10 years, with the electronics group being the highest, with an investment value of 140 billion baht, accounting for 30 percent of all private sector applications, followed by automotive. The BOI wants to promote investment in ‘new targe
t industries’ such as the battery industry, electric automotive parts industry, and electronics, which are new targets for the private sector in the next 1-2 years.
Source: Thai News Agency