BANGKOK (The Nation/Asia News Network): Move Forward Party, the leader of the coalition that expects to form the next government, has vowed to help Thailand become the regional hub for upstream chip innovation and production by enacting more targeted incentives for each company, Sirikanya Tansakun, the party's deputy leader, said.
In an interview to Krungthep Turakij, a Nation Group media outlet, Sirikanya highlighted the significance of the semiconductor industry to the country.
Technology is required to improve and transform Thailand's electronics equipment and electric vehicle production, she said.
She added that semiconductor technology would help the country achieve its goal of being at the forefront of the world's digital economy.
The party's initiative comes as the world’s leading chip-makers are considering relocating their plants to countries other than China in order to diversify their supply chain and secure their industry.
Many companies are exploring ways of mitigating any negative consequences from rising tensions between the United States and China, which has resulted in several trade barriers and sanctions.
Sirikanya said that before becoming a chip manufacturing hub, Thailand must carefully demonstrate its national stance of not taking sides with any groups and insist on collaboration with all parties as long as it benefits the country and the region.
She noted that in order to attract more investment to the country, more effective incentives other than what the Board of Investment (BOI) already offers must be implemented.
She assured that her party would continue to work on the projects begun by the previous government and that the party had no plans to dissolve the BOI.
However, some of the BOI's measures, such as tax deductions and exemptions, need to be changed.
Meanwhile, she proposed that some of the BOI's roles be modified so that the agency could provide more supportive roles that are consistent with the context and current scenario.
She expected that this strategic plan would help the country break free from the middle-income trap by introducing new industries that would serve as a new engine to boost productivity and sustain the nation's growth.