He said the board expected Cabinet approval this year and will open bids in 2019.

The eight projects are: Pak Num Pho-Denchai; Denchai-Chiang Mai; Jira-Ubon Ratchathani; Khon Kaen-Nong Kai; Chumphon-Surat Thani; Surat Thani-Had Yai; Had Yai-Padangbesar; and Baan Pai-Nakhon Phanom, he said.

“After talking to investors from major institutions within the country, we found their responses to our TFF investment opportunity better than expected,” Chavinda said at the Thailand Future Fund press conference yesterday.

The TFF initial public offering is a method for the government sector to raise capital to invest in developing transportation infrastructure in the Bangkok region. Up to 45 per cent of revenue from the Chalong Rat and Burapha Withi expressways in the next 30 years will fund the TFF units.

“Our investors say they have been waiting for the TFF to finally enter the capital market and that they expect investment returns from this project to be very good,” she said.

“The TFF investment units are attractive to investors because we have been seeing continual revenue growth from both the Chalong Rat and Burapha Withi expressways in the past 20 years while never experiencing any financial loss,” said Varah Sucharitakul, executive director, Finansa Securities Ltd.

“Furthermore, in the past three years, the revenue growth rate of the two expressways are up to 5 per cent on average”, he said.

The TFF should be attractive to investors because it has huge potential to grow in value as the government also has plans to use both motorways route 7 and 9 to fund the TFF units, Chavinda added.

“Hence, the TFF units have very high growth prospects in the future with the potential to exceed current estimated values,” Chavinda explained.

Funding these projects with the TFF will also reduce the government sector’s financial burden on the annual government budget, government loans, or the accumulated income of state enterprises, said Prapas Kong-ied, director-general, State Enterprise Policy Office.

Residential areas have been developing rapidly in the northern part of Bangkok in the past decade. The Chalong Rat expressway will link these residential areas to the business and commercial districts in the centre of Bangkok, said Suchart Chonsakpipat, deputy governor for Construction and Maintenance, Expressway Authority of Thailand.

Meanwhile, the Burapha Withi expressway will pass through various industrial, commercial, business districts and most importantly, it will connect these areas to Suvarnabhumi Airport, Suchart said.

“We believe the TFF will continue to grow in value in the future, as the government does not want to become dependent on loans or overspending the annual budget. Hence the TFF serves as a favourable alternative to raise capital to fund the development of Thailand’s infrastructure in the future,” Prapas said.

Highlighting the role of Thailand as the leader of regional MICE standard development, TCEB has high hopes to equalise regional venue standards in regard to compete on a global scale.

In 2016, Asean agreed to use Thailand’s MICE venue standard as the Asean venue standards. Countries certified with Asean MICE Venue Standards (AMVS) are Brunei with three venues, Cambodia with five venues, Indonesia with five venues, Laos five, Malaysia five, Myanmar five, Philippines five, Singapore four, Vietnam five and Thailand 13

Chiruit Isarangkun na Ayuthaya, TCEB president, championed standardisation at the AMVS meeting held until September 15 at Centara Grand at CentralWorld.

CAN YOU EXPLAIN MORE ABOUT THE REVOLUTION? WHY DO YOU CALL IT THE FOURTH INDUSTRIAL REVOLUTION? FACING THE EVOLUTION OF SCIENCE AND TECHNOLOGIES AS WELL AS THE RISE OF INDUSTRY 4.0, HOW HAS THE WORLD’S ECONOMY CHANGED?

If we look back, we had the first industrial revolution when the steam engine was created, it changed everything, created locomotives, steam boats and so on. Then we had the second industrial revolution when we invented electricity, created mass production and the world became much more industrialised. We had the third industrial revolution with the invention of computer and the world started to become digitalised.

Now we have the Fourth Industrial Revolution and it’s not related to one specific product. Now we have robots, self-driving cars, drones, blockchain. So the Fourth Industrial Revolution is different because it’s composed of many different patterns, many different technologies. And the Fourth Industrial Revolution comes much faster – we have less time to prepare ourselves compared to the last revolution.

We see the changes in the world’s economy caused by the Fourth Industrial Revolution are now unfolding. Just think of the companies which are the most-valued like Amazon, Google – the companies of the Fourth Industrial Revolution – have only been around for 20 years. So it demonstrates the speed of the Fourth Industrial Revolution. We’ll see, of course, much bigger impacts in the future. So the changes are just enormous.

If we look at the pressures, we have to deal with many challenges. The WEF is an organisation that helps governments, businesses and civil society work together to be aware of future developments and to prepare in time for social challenges. We had multiple platforms in the past and have achieved in many areas. The governments, businesses and civil society have formulated the right policies to address such challenges.

THE FOURTH INDUSTRIAL REVOLUTION IS EXPECTED TO BRING A LOT OF OPPORTUNITIES TO ASEAN COUNTRIES. WHAT DO YOU THINK ABOUT THEIR PROSPECTS? WHAT IS THE ROLE OF THE GOVERNMENTS AND WHAT CAN THEY DO TO BENEFIT THE MOST FROM THE REVOLUTION?

I think Asean countries have a great opportunity to use the Fourth Industrial Revolution to serve their countries. It’s the young generation that is eager to learn, is an entrepreneurial generation and an innovative generation. So I’m really optimistic about Aseancountries and Vietnam to play a major part in shaping the Fourth Industrial Revolution.

What is really important is to create opportunities for entrepreneurs and make sure that we have an ecosystem, which is favourable to innovation. Asean countries have to create 10,000 jobs everyday. So the traditional pattern of manufacturing will change very much in the Fourth Industrial Revolution because we’ll see robots take over some work which is now done manually. We’ll have robots also replace some of our thinking works. So we have to think very much what will be the jobs of the future.

It is also matter of education and flexibility. So, if the necessary policies are put into place, I think Asean countries have a good future, but there’s strong competition, particularly from the United States, China – who have recognised the importance of the Fourth Industrial Revolution and have already created quite a leadership, particularly in terms of artificial intelligence, robots and new technologies

What is really important is that governments should work closely with the science world, universities and industries. It needs the common efforts of all stakeholders in the society to embrace the Fourth Industrial Revolution. The World Economic Forum is very active in helping build the coalition of governments with businesses, academia and science in order to make sure that countries are best prepared for coming changes, which we see not only in businesses but also in the economy and society.

MANY PEOPLE ARE CONCERNED THAT THE DEVELOPMENT OF NEW TECHNOLOGIES WILL PUT MANY JOBS AT RISK. BUT SOME SAY NEW JOBS WILL BE CREATED ON REQUIREMENTS OF HIGH-SKILLED AND HIGH-QUALITY LABOUR. HOW DO YOU THINK ABOUT IT?

When we look back at the first industrial revolution, people who lost their jobs in agriculture went into manufacturing. Later they went from manufacturing mainly to the service industry jobs. Now of course, we’ll lose jobs in the manufacturing sector in the Fourth Industrial Revolution, but I think there’ll be new jobs like people who have to do programming.

What is important is to be aware that the Fourth Industrial Revolution means the need for special flexibility and the government can facilitate this flexibility.

When we look back at the last industrial revolution, we have always seen at the end that more jobs are created than destroyed. But the problem we have now is the speed of the revolution.

So we have to be prepared to create new jobs much faster, which means higher flexibility and it means the government must create necessary conditions to allow the up-skilling of people because we need new skills at higher level, particular in the digital world.

So I’m optimistic in the long term but in short term I think we would have some challenges to make sure that we replace the jobs we’ve lost with higher quality jobs as fast as possible.

Customers of service companies generally have to withhold tax on payments of fees at the rate of 3 per cent. Therefore, those service companies will need to maintain a profit margin of at least 15 per cent, instead of 10 per cent as before, so that the final income tax expense is equal to the amount of the withholding tax credit, meaning no tax refund will be required.

Unlike value-added tax (VAT), where overpayments can be carried forward to the next period, the withholding tax credit must be used in the same year. This means that the taxpayer has to request a refund in the same year. The claim for a withholding tax refund can be made by using either form PND50 at the same time as the normal tax filing, or by filing form Kor 10 within three years from the last day of the period for filing tax returns.

The Revenue officers must ensure that taxpayers comply with the tax regulations and be satisfied that they are entitled to receive a refund. This requires the officers to carry out tax investigations. These investigations will generally focus on the completeness and timing of revenue recognition, which must reconcile with the VAT returns. On the other hand, an investigation into expenses would focus on their deductibility and timing, including whether the company itself appropriately withheld tax before making payments to suppliers.

Delays are often encountered by taxpayers and can be frustrating. There are cash flow costs and lost opportunities for generating revenue. If working capital is limited, a long wait for a refund might result in the need to borrow funds. As with any debt, interest will need to be paid on a loan, further lowering a company’s profit.

Even if waiting for a refund is anticipated, the taxpayer can accelerate the refund process by preparing in advance. The taxpayer should be able to self-assess tax position, identify and manage its own tax risks before submitting the refund application. Also, being prepared in advance for any tax investigation will always help. Having sufficient documents available, such as the withholding tax certificates, preparing reconciliation and maintaining additional supporting documents, is important. Showing transparency and coordination in answering and addressing questions asked by the officers will help speed up the refund process. And, having a good relationship with the officers by being willing to fully cooperate will definitely support the refund.

Another (common) way to obtain a refund faster is to write a follow-up letter to the officers showing that the taxpayer is still actively pursuing the refund. And if a case ever did need to go to court, having robust documentary evidence is essential.

The taxpayer also has the right to request interest on the amount to be refunded according to the law. This states that interest will accrue from the day following the closing date of a period of three months counting from the last day for filing returns. While the process can be time consuming, interest received together with the refund will help a company reduce losses in the event of any delay. However, requesting interest on a refund is not common as it may impair a good relationship with the officers.

Of course, the least welcome scenario is taking the case to court. According to a Supreme Court judgement, the court views that the Revenue Code does not specifically provide a deadline for an officer to consider a tax refund.

This means that where the officer does not make a decision on the request within an “appropriate time”, the taxpayer should have the right to bring the case to the court.

Knowing your rights is important. It’s essential to protect your interests. But first and foremost, conducting a tax risk assessment and being prepared for a tax investigation are sensible preparations before entering into the tax refund process. With good self-preparation, a taxpayer can hasten the refund process, minimise its cost and avoid going through a number of unwelcome scenarios.

“The opportunities brought about by the Fourth Industrial Revolution are indeed enormous,” noted Nguyen Xuan Phuc, Prime Minister of Vietnam . “The start-up atmosphere is truly permeating throughout Asean.” The bloc is a shining star among emerging market economies, with robust growth rates of almost 7 per cent .

The Vietnamese prime minister emphasised the need to seize technological pportunities brought about by rapid technological growth. The prime minister added that, later in the day, he was to inaugurate a digital passenger transport service based on the 4.0 model – a collaboration between cutting-edge start-ups GoViet and GoJek, from Vietnam and Indonesia.

Aung San Suu Kyi, state counsellor of Myanmar, emphasised the technological leaps the country has achieved in the past five years, the dramatic drop in the price of mobile phones for example, but also stressed that the Fourth Industrial Revolution should be human-centric. “Our approach to the Fourth Industrial Revolution is based on our belief in the creativity, empathy and stewardship qualities of our people, especially the young,” she said.

“This Fourth Industrial Revolution is upon us. The global economy is being transformed by new and far-reaching breakthroughs in technologies,” pointed out Lee Hsien Loong, prime minister of Singapore. “Here in Asean, member states are in a good position to take advantage of the new opportunities that this Fourth Industrial Revolution can bring. First of all, our economic fundamentals are robust. Asean will become the fourth-largest economy in the world by 2020, after the United States, China and the European Union.”

“For Thailand, the Fourth Industrial Revolution represents a big turning point for the way we live and do our business; technology is now an integral part of society at all levels but also poses immense challenges for SMEs and marginal groups,” said Prajin Juntong, deputy prime minister and minister of justice of Thailand, adding that the country has implemented a “Thailand 4.0” policy to shift its economic focus towards an innovation-driven economy.

Joko Widodo, president of Indonesia, said that the narrative that the resources available to humanity are finite is flawed: “As our economies develop, they are driven increasingly not by natural resources, which are limited, but human talent, which is unlimited,” he said. Widodo noted that, in Indonesia, there are at least four start-ups now valued at $1 billion each.

Across the Asean region, the effects of the technological transformation will be keenly felt, particularly among the region’s young demographic, with 11,000 people entering the labour force each day. Acknowledging that “digitalisation has become a new growth catalyst,” Cambodian prime minister Hun Sen said that while the technological frontier will create positive change, it will also cause anxiety about job losses, as increasing automation affects manual labour and Asean as a traditional factory hub. “We need to focus on education and skills training to address job losses and economic and social inequality,” he said, calling for regional initiatives to support research, talent incubation and entrepreneurial skills.

Noting that collaborative advances in the regional market have been achieved, Thongloun Sisoulith, Prime Minister of the Lao People’s Democratic Republic, urged continued unity in an “evolving regional architecture to ensure that ASEAN connectivity grows.”

On the back of rising purchasing power of its 630 million citizens, the 10-member ASEAN has a collective GDP of $2.8 trillion, making it the sixth-largest economy in the world, one that has not escaped the attention of its regional neighbour, China. “ASEAN is China’s good neighbour. Strengthening our relationship with ASEAN is always a top priority in China’s foreign policy,” said Hu Chunhua, Vice-Premier of the People’s Republic of China.

Bringing together more than 1,000 leaders from government, business, academia and civil society, as well as almost 80 start-ups, this year’s World Economic Forum on Asean is testament to the growing clout of the region, leaders agreed.

“This year is the most powerful ASEAN summit we have ever organized. It shows the potential of the region, which combined represents 10 countries and forms one of the most powerful economic and potentially political forces in a fragmented world today,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

“Despite our differences, we should never forget that we have common global interests and a common global responsibility,” Schwab added, “The ASEAN way of striving for consensus among rival countries can serve, particularly during those times, as a good role model for our world.”

So far the crisis has been concentrated in countries with weak external positions, namely Turkey, Argentina and, to lesser extent, Philippines, India and Indonesia.

The biggest impact is likely to come through currency weakness, and the policy response it triggers. Standard response to stem currency weakness and fund outflows is to raise interest rates aggressively. This will, in turn, causes affected emerging market economies to slow down sharply. Another channel of impact is through the so-called wealth effect, whereby falls in asset prices cause household wealth to decline, leading to a slowdown in consumer spending.

Thailand, on the other hand, should hold up well against these external shocks, given its exceptionally strong external positions.

Current account surplus at close to 10 per cent of GDP is one of the highest in the world and could act as buffer for foreign funds outflow. Low foreign holdings in both stocks and bonds markets mean the potential outflows would be manageable.

Inflation is also very low at around 1.6 per cent . As expected, headline inflation peaked in August and is expected to trend down towards 1.0 per cent in December amid abundant agricultural product supply and higher base of energy prices in the second half.

Domestic consumption remains robust as durable and semi-durable goods consumption helped offset slowdown in services. Non-durable goods consumption remained weak but is expected to recover as farm income continues to rise and consumer confidence hits highest level in 5 years.

We reiterate our view that the Bank of Thailand will keep its policy rate at +1.5 pef cent throughout 2018 as inflation is expected to soften. For external factors; the resilience of the baht relative to the currencies of emerging markets’ and strong bond market inflows mean immediate central bank action should not be warranted.

Contributed by KOMSORN PRAKOBPHOL, head of strategy at TISCO Economic Strategy Unit. He can be reached via http://www.tiscowealth.com or komsorn@tisco.co.th.

Praphon Wongtharua, DEDE director-general, said the department has also been drafting a power development plan (PDP) for the same period. The new PDP will be categorised into North, Northeast, East, West, South and Bangkok.

With these plans in place, by 2037, 30 per cent of the total energy used in the country will be produced using alternative means, Praphon said.

According to the current AEDP, alternative energy includes ethanol and bio-diesel, which are normally petrol substitutes for powering vehicles. However, their usage could well reduce due to the entry of electric vehicles and a mostly electric rail transit system. As part of the current plan, ethanol usage had been set at 11.3 million litres per day and bio-diesel as 14 million litres daily.

DEDE also expects to use solar rooftops, biomass and waste for power production. However, the use of alternative means to produce power depends on several factors, namely demand and power-production capacity, Praphon said, adding that production costs should not be affected.

He pointed out that solar rooftops can be installed anywhere, while biomass power plants can be located in areas where there is a large amount of wood waste, such as the South.

The 2015-2036 AEDP aims to use alternative resources to produce 19,684.4 megawatts of power. Of this, 6,000 megawatts will be provided by solar energy, 5,570 megawatts from biomass, 3,002 megawatts from wind power and 2,906.4 megawatts from hydropower.

The remainder will be generated using other means, such as 550 megawatts from garbage; 600 megawatts from waste and waste water; 376 megawatts from small hydropower plants; and 680 megawatts from energy crops.

Praphon said a ministerial regulation on the types, sizes, standards, criteria and design of buildings for energy conservation called Building Energy Code (BEC) should be approved by the Council of State and announced early next year.

Under the new code, at least 2,000 square metres of new buildings should be built following energy conservation design standards. These building types extend from offices, hotels, hospitals, department stores, theatres, service facilities, assembly buildings, condominiums and educational establishments.

The plan is that the code will be applied to buildings that cover 10,000 square metres or more by next year, and in 2020, the code will be applied to those with areas of 5,000 square metres or more. In 2021, the code will target buildings with areas of 2,000 square metres or more.

The BEC is part of the government’s energy efficiency plan, which aims to save energy. From 2009-2018, some 650 buildings have been inspected, and over the past two years, about 114 buildings of 33 agencies have saved 430 million units of energy worth about Bt1.5 billion.

The routes will take in Chiang Mai, and Phangnga-Phuket.