BOI identifies eastern region investment direction

Loosens foreign ownership restrictions

Revised investment policies and the future direction of investment in the eastern region were focused on during a conference opened by BOI Secretary Sataporn Kweetanon at the Pattaya Dusit Resort on September 1. An audience of over 400 representatives from various businesses and government offices attended.

Investment policy revisions are coming about as a result the current economic situation, which is dictating the future direction of foreign investment in the eastern region.

BOI Secretary Sataporn Kweetanon addressed 400 representatives from various businesses and government offices at the Pattaya Dusit Resort on September 1.

In 1997, foreign investment started to decline as the economy fell, leading to a phase where the BOI was unable to attract foreign investment. This has brought on drastic changes in policy, including special exclusions to allow foreigners to hold more than 50% share of certain local companies. This, BOI said, is being done to induce industrial expansion.

Sataporn said that BOI has received over 900 requests to set up new businesses within the last seven months. The requests peaked in July with 300 new prospects. “This indicates that industrial business is experiencing revitalization, unaffected by the higher fuel costs,” he said.

Exports in 1999 increased by 4% and a 9% increase is almost assured at the end of this year, he said.

Sataporn said that other encouraging signs include more people taking part in life and hospital insurance programs offered by the Ministry of Labor and Social Welfare; and an increase in tax revenue reported to the Treasury Department.

BOI Secretary Sataporn emphasized that it was imperative for business owners to adhere to environmental control standards in order to survive. He also said that the current policies are expected to continue for the next four years with minimal change.

Business sectors showing negative growth were mainly identified as those having no foreign export connection, Sataporn said, indicating how important export manufacturing is to the economy today. Rather than the government investing in various projects alone, the opportunity for private sector investment is expected to open up in areas such as the Thai Oil ITP electrical plant and its peripheral projects.