Applications for investment privileges through the Board of Investment dropped 48% year-on-year in January, a situation anticipated by the agency.
A BoI source said a total of 36 projects were proposed, with a value of 7.66 billion baht, down 62%. The decrease reflected the fact that a large number of expansion-minded investors rushed to submit applications before the end of last year.
The BoI this year has changed from a region-based system of incentives, such as tax breaks, to one based on sectors, emphasising those that support the digital economy, including technology, research and development, and design.
In December, the BoI approved 2,092 projects with a total investment value of 1.43 trillion baht. As a result, investment projects approved last year hit a 50-year high of 3,469 projects worth 2.19 trillion baht.
The source said the low number of applications in January did not affect the country's investment outlook.
He said the types of projects seeking investment privileges matched the BoI's targets for promotion: software, software development, trade facilitation, alternative energy, and others supporting the government's digital economy initiative.
Udom Wongviwatchai, director of the Office of Industrial Economics, said Thai industry was shifting toward companies utilising technology while labour-intensive industries were being phased out as Thai investors begin to invest in neighbouring countries.