BoI expected to appoint board before Songkran

BoI expected to appoint board before Songkran

The Board of Investment (BoI) is expected to function again by the third week of April following the cabinet's decision to officially appoint new board members before the long holiday begins, says caretaker Industry Minister Prasert Boonchaisuk.

Workers on Vibhavadi Rangsit Road prepare a site for future construction of the subway’s Red Line. A new BoI board is likely to be appointed this month. PATTARAPONG CHATPATTARASILL

There has not been a board since last October, when the previous members' terms expired a month before the protests began. Investment proposals faced further hiccups with the House dissolution in December, which prompted worries about the legitimacy of the caretaker Yingluck Shinawatra government.

The caretaker government solved the problem by seeking the advice and getting the approval of the Election Commission and the Council of State on the legitimacy of new appointed members by the caretaker government.

"This is our priority, as no new projects could move forward under these circumstances, and that would hurt the economy in the long run," said Mr Prasert.

He said the BoI and the Industry Ministry would work together to appoint the right candidates under the close scrutiny of the public and private sectors, as well as the economists.

More than 400 projects with a combined value of 660 billion baht have been waiting for investment privilege approval since October, and these are expected to be rapidly cleared up within four months after the new board is appointed.

Among them is the second phase of the eco-car investment project worth nearly 140 billion baht, with a combined capacity of 1.58 million vehicles.

The second phase is expected to be a major investment source the next few years, as it has attracted 10 car makers including Toyota, Honda, Nissan, Mitsubishi and Suzuki. Only 200 projects were submitted to the BoI with investments valued at 200 billion baht during the first three months of this year, down from 610 projects worth 275 billion in the same period last year.

BoI secretary-general Udom Wongviwatchai said despite the slow first quarter, he is confident the BOI has the capacity to clear the backlog quickly.

The BoI is aiming at investment of 900 billion baht this year, slightly lower than the 1 trillion logged last year, he said.

Mr Udom insisted that even if the caretaker prime minister were to be indicted for negligence in allowing irregularities in the rice scheme, forcing her to relinquish her office immediately, under BoI law she could remain acting prime minister in order to chair the board and approve projects until a new government was formed.

"We can make it, although it will be hard work to clear all 400 projects within four months," said Mr Udom.

He said after the second phase of the eco-car project is completed, more investments will come from the medical service and agriculture sector.

Thanavath Phonvichai, vice-president for research at the University of the Thai Chamber of Commerce, said the delay in board appointment not only affected investment projects in manufacturing but also hurt infrastructure outlays such as projects under the government's 350-billion-baht water management scheme that required BoI privilege approval.

"Investors are ready to invest as soon as possible after receiving approval from the BoI, as during the economic slowdown competition is expected to bring down wage costs as well as land prices, so this is actually the right time for investment. Thailand still has great potential to grow by 5-6% over the next 3-5 years regardless of whether there are political hiccups," said Mr Thanavath.

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