Measures to Encourage Private Investment

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Measures to Encourage Private Investment
10 August 1999
Tax and Tariff Measures
Equity Investment Measures
Measures to Promote the Recovery
of the Real Estate Sector
Measures to Improve SME
Financing
- Reduce import duties of capital goods and
raw materials, and eliminate the import
duty surcharge (revenue loss estimated at
4,985 million baht per year). - Allow
accelerated depreciation using the double
declining balance method. - Eliminate the
registration requirement for gold imports
and exports.
- Equity Fund (500 million US dollars
initially and may increase to 1 billion US
dollars) - Thailand Recovery Fund for medium
scale enterprises (100 million US dollars) -
Fund for Venture Capital Investment in SMEs
(1,000 million baht)
- Provide long-term fixed rate credit through
GHBs and SMCs bond issuance in the amount
of 50,000 million baht. - Increase the role of
National Housing Authority in purchasing and
completing unfinished housing projects
(15,000 million baht). - Reduce real estate
transfer fees (revenue loss estimated at
2,500 million baht until 2000).
- Restructure SICGC to improve the
effectiveness of credit guarantees for SMEs
(increase SICGCs capital by 4,000 million
baht in 1999 and by another 4,000 million
baht in 2003). - Restructure SIFC
(increase SIFCs capital by 2,500 million
baht in 1999 and by another 5,000 million
baht in 2003). - Support the establishment
of Financial Advisory Centers for SMEs
(100 million baht).
Capital support for competitive projects with
high business potential.
Facilitate corporate debt restructuring.
- Provide enterprises with
sufficient capital to expand their
investment. - Reduce financial costs. -
Increase the corporate sectors ratio of
equity to debt and thereby reduce risks
to both corporate and financial
sector.
Reduce production costs, increase producers
liquidity, encourage business expansion,
and support restructuring to enhance
efficiency and competitiveness.
- Accelerate recovery of real estate sector. -
Support ability of low and middle income
people to own houses. - Reduce excess supply of
housing. - Establish new housing credit system
through long-term funding.
Consumers benefit from lower prices
of imports and prices of goods that require
imported raw materials. Consumption is
expected to increase.
- Increase credits to SMEs. - Reduce SMEs
financial costs. - Support SMEs debt
restructuring process.
Encourage private investment, promote
restructuring and strengthen the Thai economy.
Note GHB Government Housing Bank
SMC Secondary Mortgage Corporation
SIFC Small Industry Finance Corporation
SICGC Small Industry Credit Guarantee
Corporation