A man takes a picture of basket filled with rubber at the central rubber market in Nong Khai, Thailand, September 16, 2015. Steps announced this week by Thailand's ruling junta to help rubber producers grappling with plunging prices do not go far enough, some farmers said on January 13, 2016. The cabinet has promised to buy some rubber directly from farmers at rates above market levels and announced piecemeal measures including a plan to open up rubber processing factories. The moves came after protest threats by rubber farmers galvanized a military government that draws much of its support from Bangkok and the south, the country's main rubber-growing region. Picture taken September 16, 2015. REUTERS/Jorge Silva
SONGKHLA: The Industrial Estate Authority of Thailand is inviting the Malaysian Rubber Products Manufacturers Association (MRPMA) to visit the “Rubber City” located in the Southern Region Industrial Estate in Songkhla’s Hatyai district for investment opportunities.
Industrial Estate Authority of Thailand assistant to governor Suwatana Kmolwatananisa said the purpose of the visit is to learn about the Songkhla Rubber City’s infrastructure, incentive packages, tax exemption and one-stop service centre.
“We are expecting their visit towards the end of April this year.
“We will also extend invitations not only to them but to other Malaysian companies who are interested to invest in the Rubber City,” she told reporters on a visit to the Rubber City here.
It was reported that in the initial phase, the Rubber City will cover some 125ha.
Kmolwatananisa said the Industrial Estate estimates a total investment of US$228.5 million for the two phases of the Rubber City, which can accomodate at least 70 companies.
“Right now, around 20 small and medium enterprises have requested to use the land here. They haven’t issued the land use application form. According to their letter of intent, the obligator may be allowed to invest around 200 million baht,” she added.
Asked if any other foreign investors have shown interest, Kmolwatananisa said several potential Chinese companies have expressed interest in the project.
She said the Rubber City, slated for completion in seven years, would focus mainly on the midstream and downstream industry, and will be an integrated rubber processing centre, including for tyres, rubber gloves and compound rubber.
“If all the projects in this Rubber City are completed, we can generate jobs for the locals and all the benefits can be enjoyed by foreign and also Thai companies,” said Kmolwatananisa.
Tax incentives will be offered to investors in the Rubber City, which mainly targets the automobile, rubber tube, rubber glove and latex industries.
“Foreign investors will be allowed to own land in the industrial estate, and be exempted from corporate income tax on dividends for up to eight years,” said Kmolwatananisa.
She said the Rubber City initiative would help increase domestic consumption of rubber while at the same time raise rubber prices.
The natural rubber price in Thailand has increased to 45 baht from 37 previously.
Asked if the International Tripartite Rubber Council’s implementation of the Agreed Export Tonnage Scheme since March 1 this year has helped to shore up flagging natural rubber prices, Songkhla Chamber of Commerce President Somporn Siriporananon said the rubber price has held its momentum under the scheme.
“But also right now is the dry season, which has led to lower production and thus has increased the rubber price.
“What could really help the rubber price is improving our industry, from upstream to midstream and downstream,” said Siriporananon.
Songkhla produces about 500,000 tonnes of rubber annually. - Bernama
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
