GEORGE TOWN: Thailand is wooing Malaysian investors by offering 13 years of exemption from corporate tax and import duties.
The exemption can extend to 15 years for those carrying out research and development (R&D).
Thailand is eyeing investments especially in biotechnology, semiconductors, electric vehicles (EVs), clean technology, aerospace, advanced medical and biotech industries and deep-tech R&D.
The exemptions on import duties are for machinery, raw materials used for exports and goods brought in for R&D.
Investors can also get double deductions on transportation, electricity and water costs and a 25% deduction on the cost of installing or building facilities.
Malaysian businesses, particularly those in the northern region, can take advantage of country’s proximity, said Thailand Board of Investment’s investment promotion senior officer Patarakrit Vichitbhat.
Thailand recorded nearly US$44bil (RM179bil) in investment applications in the first half of 2026, up 37% year-on-year, while foreign direct investment applications rose 80% to more than US$40bil (RM163bil).
Malaysian investment applications reached US$175mil (RM712mil) through 35 projects last year. In the second quarter of this year, applications from Malaysia rose 42% year-on-year to US$97mil (RM395mil).
Patarakrit said Malaysian investment from 2021 to the second quarter of this year was led by machinery and vehicles at 5.82 billion baht (RM717mil), agriculture, food and biotechnology at 4.88 billion baht (RM601mil), and high-value services at 3.36 billion baht (RM414mil).
He said Thailand offers investors established infrastructure and supply chains, stable utilities, industrial estates, skilled workers and access to more than 60 million people in its domestic market and over 700 million consumers across Asean.
Thailand’s semiconductor and advanced electronics sector also attracted 753 investment applications worth 800 billion baht (RM98.5bil) from 2023 to 2025.
Patarakrit said opportunities in the EV industry extend beyond vehicle assembly to batteries, components and charging infrastructure.
Other areas being promoted include bio and green industries, automation, robotics, artificial intelligence and digital services.
Thai Consul-General in Penang Psusist Wongsurawat said the proximity between Thailand and Malaysia and their transport links make it easier for businesses to invest across the border and build regional supply chains.
“We hope more Malaysian investors, particularly from the northern region, will consider Thailand when establishing or expanding their businesses,” he said.
