The Board of Investment (BoI) has approved 39.4 billion baht worth of new medical and biotechnological investment projects as part of a move to make Thailand a medical industry hub in Asean.
Up to 171 projects were granted tax privileges between 2018 and September 2020. Most of them, 129 projects valued at 30.8 billion baht, are related to medical businesses.
Coming second are 29 projects, worth 1.9 billion baht, in scientific laboratory projects, followed by 13 biotechnology projects, worth 6.6 billion baht.
BoI secretary-general Duangjai Asawachintachit attributed the high numbers to the government's emphasis on the medical industry, which is one of 12 targeted S-curve industries.
The Covid-19 outbreak has also sped up medical investments in the country.
"The medical industry continues to expand due to growing demand for medical equipment and medicines in the global market," said Ms Duangjai.
From January to September this year, most applicants for tax incentive programmes were in the medical industry, with 65 projects, valued at 14.7 billion baht, submitted to the BoI.
They were followed by seven scientific laboratory projects worth 351 million baht and five biotechnology projects worth 649 million baht.
Two startup companies -- Baiya Phytopharm and the Nabsolute -- are among applicants who were granted tax privileges.
They are also supported by Chulalongkorn University.
Baiya Phytopharm invested 3.94 billion baht in biotechnology development, aiming to produce protein from plants and export 70% of the output, said company co-founder and chief executive Suthira Taychakhoonavdh.
She said the company uses tobacco plants of an Australian strain as a "host" to culture protein, which is later extracted from their leaves and purified.
This protein is a precursor for medicine and cosmetic industries.
Mr Suthira said her company is also experimenting with six Covid-19 vaccine candidates. One of them is going to be tested on humans.
If successful, it will become another vaccine for Thai people in late 2021 or early 2022, she said, adding that production capacity should reach two million doses a month. They could be sold at 500 baht a dose, she said.
The company is also preparing to test its Covid-19 medicines on hamsters but needs to wait for import of the animals. Hamsters are currently scarce due to strong demand for them worldwide.