The Board of Investment of Thailand (BOI) today approved a series of measures to mitigate the impact of the coronavirus or COVID-19 outbreak on business, including steps to encourage rapid investment in the manufacturing of medical equipment.
The board also approved incentives to promote technology-based “smart farming” solutions as well as research and development in a broader range of sectors.
“In face of the unprecedented situation resulting from the virus outbreak, we have taken a range of measures to address the urgent needs of affected business sectors,” Ms Duangjai Asawachintachit, Secretary General of the BOI, said at a press briefing after a board meeting chaired by Prime Minister Gen Prayut Chan-ocha in Bangkok.
“The measures for the medical sector aim to enable a rapid response to the situation, while paving the way for longer-term development.”
Ms Duangjai Asawachintachit, Secretary General of the BOI
To address the increased demand for medical equipment and supplies resulting from the outbreak, the BOI approved amendments to BOI-eligible businesses and enhanced benefits related to the medical sector with a view to accelerating investment in the production of important medical equipment and supplies. Moreover, support will also be given to the modification or transformation of existing production lines to increase the domestic availability of medical supplies, Ms Duangjai told a press conference held online to respect social distancing rules.
The measures approved today include the following:
Accelerate investments in the medical sector
(1) Apart from the 3 to 8 year tax holidays, a reduction of 50 percent of corporate income tax for an additional 3 years will be given to qualified investments in the medical sector.
Examples include the production of medical devices and parts, non-woven fabric used as raw materials in the production of medical supplies, diagnostic test kits, drugs, and active pharmaceutical ingredients.
This measure covers projects that apply for promotion between 1 January and 30 June 2020 and must start production and generate income by 31 December 2020. Distribution or donation domestically of at least 50 percent of the output must take place in 2020-2021.
(2) A measure to support the adjustment of existing production lines to manufacture medical devices or parts by exempting import duties on machinery on the condition the equipment is imported within 2020 and the application for production line adjustment is filed by September 2020.
(3) Adjustments to the benefits granted for the production of raw materials used in the manufacture of medical products to encourage a more complete value chain in Thailand. For…