The government has ordered the Board of Investment (BoI) to speed up use of its 10-billion-baht Competitiveness Fund, which has been inactive despite being established a year ago.
Deputy Prime Minister Somkid Jatusripitak attended the Competitiveness Committee meeting chaired by the prime minister on Thursday, which approved extending the fund's coverage to social development and environmental protection projects.
The fund was set up under the Competitiveness Fund for Target Industries Act 2017 as a state financial tool to accelerate investment in 10 targeted industries.
The government hopes the fund will allow Thailand to compete with its neighbours such as Vietnam, Malaysia and Cambodia in attracting foreign direct investment in these targeted industries.
The 10 industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
The Act allows the government to offer up to 15 years of corporate tax breaks.
Thailand's fund is similar to those in other countries such as Malaysia, which has an 8.5-billion-baht fund for targeted industries, while Singapore has a 70-billion-baht fund.
Mr Somkid said the fund should also be spent on projects which comply with six strategies of the 20 year national strategy (2018-2038).
The six strategies are: enhancing national security; strengthening national competitiveness; developing and empowering human capital; broadening opportunities to improve social equality; rebalancing and adjusting state administration; and creating economic growth in an environmentally friendly way.
Under the 20-year national strategy plan, the government aims to narrow the widening income disparity gap in the country to 15 times over the next 20 years, down from 20 times.
The national strategic plan has the ultimate goal of narrowing income disparity, focusing particularly on the richest 10% and the poorest 10%.