The Board of Investment (BoI) has approved two projects -- a hospitality business and coconut oil production -- in Nong Chik district, Pattani province, with a combined value of 620 million baht.
The move aims to promote investment and stimulate the economy in the Deep South.
A Malaysian company was approved for a project to invest 120 million baht to develop and build a hotel to serve the Mice (meetings, incentives, conventions, exhibitions) segment. The hope is that the hotel will inspire locals to create businesses related to seminars, restaurants and tourism.
Nong Chik Development Co was approved for investment of 500 million baht to produce coconut oil products for domestic sale and export. The company wants to develop higher value-added products such as cold-pressed coconut oil, which has become popular in many markets.
Coconut oil production will support local farmers in seven areas in Deep South provinces and increase their revenue. Coconut growers are forecast to generate revenue of more than 500 million baht a year.
The company plans to export to China, Europe and the US to serve customers who are allergic to cow's milk and those who like organic products.
Seksan Ruangwohan, director of investment ecosystems at the BoI, said the board has a policy to support and promote investment in the Deep South provinces -- Yala, Pattani and Narathiwat -- under the Southern Economic Triangle scheme.
"Both projects will build up local investors' confidence to invest in those provinces in the long run, as well as improve the quality of life there," he said.
The cabinet approved in October 2016 choosing three zones -- Nong Chik district in Pattani, Betong district in Yala and Sungai Kolok district in Narathiwat -- for the triangle, and set up 63 development projects in three zones. More than 5 billion baht was approved to carry out development plans, with all projects scheduled for completion by 2020.
Mr Seksan said the government ordered the BoI to offer both tax and non-tax incentives to promote investment in the three provinces.