Thailand channels $3.66bn projects through fast-track

Thailand has allocated 17 strategic industrial projects, valued at 121 billion baht, to a fast-track approval process, accompanied by additional tax incentives aimed at enticing technology-focused enterprises to list their shares on local capital markets. The Board of Investment (BOI) approved these measures during a meeting chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas.

This expansion of the Thailand FastPass mechanism, in conjunction with the launch of a BOI-to-IPO programme, is expected to yield more than 14,000 jobs. Electronics and electrical manufacturers comprise 10 projects, worth 83.92 billion baht, accounting for nearly 70% of the latest portfolio. Other projects include processed-food initiatives, pet nutrition ventures, and precision machinery alongside automotive component manufacturers.

These additions bring the total FastPass portfolio to 42 strategic projects across three rounds, with planned investments surpassing 344 billion baht and anticipated employment of over 27,000 individuals. The scheme employs service-level agreements among state agencies to expedite licensing timelines, resolve approval bottlenecks, and accelerate projects from submission to construction and operation.

The inaugural two FastPass rounds encompassed 25 projects from 23 companies, amounting to more than 223 billion baht, generating over 13,000 jobs, and have all received investment-promotion approval. The BOI is also shifting its evaluation criteria for investment promotion, prioritizing realized investment, domestic value addition, connections with small and medium-sized suppliers, high-skilled employment, research and development, technology transfer, and capital-market participation.

This policy overhaul narrows support for activities generating limited local value, favoring advanced manufacturing, technology transfer, and improved domestic vendor integration. The new operational indicators will track the proportion of approved projects that become investments and the speed at which agencies process approvals.

The BOI's ultimate goal is to elevate investment to 30% of gross domestic product, stimulate annual economic growth above 3%, and enhance Thailand's global competitiveness ranking. These objectives are government targets, contingent on successful investment execution, productivity enhancements, and prevailing economic conditions.

The BOI's secretary-general, Narit Therdsteerasukdi, noted the agency's transition towards measuring the quality and domestic value generated by investment rather than solely focusing on application volumes. The government seeks targeted measures in strategic sectors to promote higher investment and productivity. The BOI-to-IPO programme enables promoted companies, particularly those in the New Economy, to raise capital through Thailand's exchanges and broaden their operations.

The Securities and Exchange Commission (SEC) has streamlined its IPO approval process, while the stock exchange has eased certain capitalization and operational requirements for qualifying New Economy companies. Companies promoted by the BOI or the Eastern Economic Corridor are eligible for a specialized listing pathway, linking investment incentives with access to equity financing.

Promoted entities that list on the Stock Exchange of Thailand, the Market for Alternative Investment, or the LiVEx board may qualify for additional tax relief, with SET-certified New Economy firms potentially receiving up to three additional years of corporate income-tax exemption or a 50% reduction for five years.