The Thai government on Monday kicked off its "Prime Minister Meets CEOs" series, starting with the automotive, electronics and electrical appliance sectors in the country's latest effort to restore confidence among foreign investors.
Prime Minister Prayut Chan-o-cha led a meeting of economic ministers -- Deputy Prime Minister Somkid Jatusripitak, Finance Minister Apisak Tantivorawong, Industry Minister Atchaka Sibunruang and Commerce Minister Apiradi Tantraporn -- with chief executives from Mitsubishi Motors (Thailand), AutoAlliance (Thailand) or AAT, Seagate Technology, Mitsubishi Electric Consumer Products, Thai Samsung Electronics and HGST (formerly Hitachi Global Storage Technologies).
Mr Somkid said after the meeting that the executives voiced confidence and a readiness to beef up investment in Thailand.
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The companies mostly called on the government to tackle issues such as electricity supply, telecommunications networks and tax structure, he said.
Mr Somkid said the government would call similar meetings with chief executives from other sectors on a regular basis.
Deputy government spokesman Weerachon Sukhondhapatipak said Mitsubishi Motors reaffirmed its 33-billion-baht investment plan for the year in Thailand, now the group's most important production base outside of Japan.
Morikazu Chokki, president and chief executive of Mitsubishi Motors (Thailand), called on the government to introduce more financial measures to boost purchasing power for those hit hardest by economic constraints and to take care of foreign exchange issues with the baht, which is now comparatively strong against the yen.
Trevor Negus, president and chief executive of AAT, a joint venture between Ford Motor Co and Mazda Motor Corporation, said his company was also ready to continue investing in Thailand, as the global economy was expected to recover next year.
He urged the government to speed up investment in needed infrastructure, particularly for land transport, as roads are in a state of congestion and decay.
AAT also asked the government to put off enforcing a new excise tax due to take effect early next year until after 2016 or until the Thai automotive market recovered.
The new tax regime is based on carbon dioxide emissions, E85-gasohol compatibility and fuel efficiency instead of just engine size as before.
The excise tax on vehicles with carbon dioxide emissions below 100 grammes per kilometre will be cut to 12-14% for eco-cars from 17%, but the 10% tax rate for hybrid vehicles will remain unchanged.
The Federation of Thai Industries' automotive industry club recently slashed its projection for domestic sales to between 750,000 and 800,000 vehicles from 850,000.
That would mark three straight years of contraction for domestic automobile sales.
Thailand's domestic car sales reached 1.45 million in 2012 and 1.33 million in 2013.
The good showings were propelled by the government's first-time car buyer scheme and strong demand after major flooding hit several provinces in 2011.
But sales fell by 33.7% last year to 881,832 vehicles, depressed by political turmoil and low prices for farm products.