TOKYO : Prime Minister Yingluck Shinawatra has assured Japanese investors that Thailand will do all it can to accommodate their wishes as it bids to become a regional investment hub.
Prime Minister Yingluck Shinawatra delivers a speech yesterday at the ‘International conference on The Future of Asia’ in Tokyo. UMESH PANDEY
Ms Yingluck was speaking at the "Future of Asia" gathering of investors and bankers in Tokyo. Six ministers accompanied her.
The premier told the audience that infrastructure, environmental incentives, the strong baht and the deep South were all concerns the government would tackle to improve the investment climate in Thailand, but she asked for patience.
"We will try to implement regulations to suit investors as we want to make Thailand an investment hub," she said.
"Please be patient and we will amend and change the regulations for you and other investors. The government will try to ensure Thailand will be a good place for investments for you all in the future."
The Board of Investment recently pushed back planned changes to the law that would remove some incentives offered to less environmentally friendly companies, and give more incentives to companies in 10 sectors that Thailand has identified as growth areas.
These 10 sectors are: Basic infrastructure and logistics; basic industry; medical devices and scientific equipment; alternative energy and environmental services; industrial sector support services; advanced core technologies; food and agricultural processing; hospitality and wellness; automotive and other transport equipment; and electrical appliances.
Ms Yingluck said the government would consult investors over what incentives they would like to see, and then adapt the law in line with these wishes.
This would give foreign investors greater confidence in Thailand, she said.
As for the strong baht, Ms Yingluck said this was caused by the quantitative easing measures of the United States, United Kingdom, European Union and Japan and all related sides would need to work together to tackle the issue.
"Asia needs to work together to manage inflows productively to ensure stability in the region," she said.
"Some say funds flow like water. I believe that there should be cooperation between all countries through which this water flows, so that all can benefit and grow together.
"Together, we can build a vibrant regional market to absorb goods, products and services, while at the same time excess funds can be used for investments that benefit the whole region."
She said part of these fund flows could then be used for the development of infrastructure in the region. Thailand will boost its own infrastructure with its 2-trillion-baht borrowing plan to boost transport networks nationwide.
In response to concerns raised that Bangkok may neglect the troubled far South in its infrastructure spending, Ms Yingluck said: "In the past, the South did not see much investment, but this year we will strengthen investments there.
"We will not just invest in infrastructure but also industries, and we will allocate more budget to the South," she said.