The Board of Investment (BoI) reported a 31% year-on-year surge in the value of new investment project proposals in the first quarter, tallying 228 billion baht, with electronics and electrical appliances the segment comprising the highest value.
Investment applications for electronics and electrical appliances totalled 77.1 billion baht, followed by automobiles and auto parts (21.3 billion), petrochemicals and chemicals (17.6 billion), digital technology (17.4 billion) and agribusiness and food processing (13.2 billion).
Prospective investors are especially interested making printed circuit boards and wafer fabrication for power electronics.
The board received 724 new project proposal requests for investment incentives in the quarter, a gain of 94% year-on-year.
"We partly attribute the increase to geopolitical conflicts, which are causing investors to seek new investment destinations, including Thailand," said Narit Therdsteerasukdi, secretary-general of the BoI.
The rise in investment applications also resulted from the government's roadshows organised abroad to encourage foreign entrepreneurs to invest in Thailand, he said.
From January to March this year, foreign direct investment rose 130% year-on-year, totalling 460 projects with a total investment value of 169 billion baht, up 16%.
Singapore led with investment applications tallying 42.5 billion baht, followed by China with 34.7 billion, Hong Kong 26.6 billion, Taiwan 20.0 billion and Australia 17.2 billion.
According to the BoI, prospective investors also sought incentives for projects to develop smart and sustainable industries. They submitted 105 applications, marking a 36% increase from last year, with a total investment value of 5.71 billion baht, up 28%.
The majority of these investors are keen to initiate projects in energy conservation and renewable energy, while others are interested in upgrading machinery and implementing automation in factories, said the board.
In the first quarter, the BoI approved 785 investment projects valued at 255 billion baht, marking a 6% increase year-on-year.
These projects are anticipated to increase the export value by more than 600 billion baht annually, contributing to the domestic use of raw materials valued at 240 billion baht per year, which constitutes 50% of the total value of raw materials.
These projects are estimated to create 50,000 jobs, according to the BoI.