New appointments to the Board of Investment (BoI) are still shelved despite the terms of board members expiring last October.
A Government House source said the caretaker government is consulting the Election Commission about whether it is legally eligible to appoint new board members and whether the new board can approve promotional privileges for any new investments.
The source said investment applications worth 400 billion baht are awaiting approval.
The biggest project belongs to Toyota Motor (Thailand), which is asking for promotional privileges to produce passenger cars and parts worth 50 billion baht. The Japanese car maker submitted applications last October.
However, the source admitted it is normal practice for investors to wait during a political transition or general election.
The BoI usually meets every month to consider investment applications.
The government has also yet to endorse new investment regulations even though they were scheduled to be enforced last year, the source said.
The source said the BoI's subcommittee is by law allowed to approve investment privileges to applications valued at only 200 million baht each.
Applications of greater value need to go through the BoI's board.
Normally, the committee of the BoI board is chaired by the prime minister, with committee members including ministers and permanent secretaries of the economic ministries, four experts and the chairmen of the Federation of Thai Industries, Thai Chamber of Commerce and Thai Bankers' Association.
The first 11 months of last year saw 1,787 applications valued at 866 billion baht, up from 1,877 applications worth 864 billion in the same period of 2012.
Originally, the BoI projected applications would reach 1 trillion baht this year, with 2,000 applications.
Last year, secretary-general Udom Wongviwatchai said rebuilding foreign investor confidence is a top priority.
Investors from Japan, the US and Europe as well as high-potential countries such as South Korea, Taiwan and Australia will be the main focus for investment promotion, he said.
The offices will also be responsible for promoting Thai investment abroad and informing investors about new policies.
New policies include the second phase of the eco-car project and the BoI's new investment strategy that is expected to be in place next year.
Unlike the previous strategy that covered all industrial sectors, the new one focuses on 10 sectors.
The sectors include aviation, food processing, hospitality and wellness, infrastructure, logistics and renewable energy.