At the ADB’s annual conference on “New Asian-European Approa-ches on Finance and Infrastructure” on Tuesday, Jin stressed that AIIB would like to cooperate closely with both the WB and the ADB, which it considers sister institutions, in financially supporting infrastructure projects for member and non-member countries.

In his long career, he spent six years with the WB and five years at the ADB before moving on to take over as president of the AIIB, so any criticism or insult against the other two banks is also an insult against him, he said.

However, Jin was quick to emphasise that unlike the ADB, which might focus on poverty reduction, the AIIB would focus on infrastructure lending, because if infrastructure is in place, it will help tackle economic or poverty problems.

The ADB estimates that some US$800 billion (Bt28 trillion) will be required in infrastructure investment in Asia over the coming decade.

That leaves a broad scope for the AIIB and other development institutions to play a role or cooperate in filling the financing needs for countries in this region and beyond, he said.

The AIIB follows three lending principles.

Infrastructure projects that meet the bank’s requirements must have financial sustainability, since the AIIB is not a charity organisation, and must be environmentally friendly and socially acceptable.

The AIIB will also adopt international best practices in universal recruitment and universal procurement. This should adequately address criticisms that China might unload its industrial overcapacity on the AIIB’s lending projects, he added.

The ADB also reported that it leveraged a record $10.74 billion in co-financing last year.

Combined with $16.44 billion from its own resources for grants, loans and technical assistance, total assistance reached $27.17 billion, the ADB’s Office of Co-financing Operations (OCO) said in its annual report released at the bank’s annual meeting in Frankfurt.

The co-financing figure includes $6.17 billion – the highest amount ever raised through robust partnerships with bilateral and multilateral organisations, foundations, corporations and other sources of concessional funds – to support 69 investment projects and 85 technical assistance projects.

Despite global fiscal constraints, financing support from these development partners increased by 39 per cent from $4.43 billion in 2014. The remaining amount came from commercial co-financing.

“We are grateful for the contributions from our development partners,” OCO head Rune Stroem said.

“Through joint efforts and deeper collaboration, we experienced an unprecedented level of co-financing in 2015. “Together with our partners, we intend to improve delivery of programmes and projects to yield concrete and measurable results for our developing member countries.”

“We hope the 10-year tax exemption for venture-capital and private-equity trusts that invest in innovative and start-up business operating under the 10 industry-cluster target, and the five-year tax exemption for start-ups establishing themselves this year, will challenge investors and start-ups to invest in and establish a business. The target is for 10,000 new businesses to be set up by the year’s end,” Science and Technology Minister Pichet Durongkaveroj said yesterday.

He was speaking at the “Tax incentives for Venture Capital and Innovative Start-ups” seminar, arranged by the Securities and Exchange Commission (SEC).

Under the incentive for venture-capital operators and private-equity trusts, which came into effect on February 10, new entities that invest in an innovative and start-up business approved by the National Science and Technology Development Agency (NSTDA) will get a 10-year income tax exemption from the start of their investment.

Meanwhile, approved start-ups established between October 1, 2015 and the end of this year benefit from a five-year income tax exemption, effective from April 18.

To qualify for such incentives, the NSTDA requirement is for the new business to undertake innovative work in one of 47 technologies, which will be announced at the end of this month, the minister said.

The technologies must fall within the 10 industry-cluster target: the first five ‘S-curve’ businesses of next-generation automotive, smart electronics, affluent medical and wellness tourism, agriculture and biotechnology, and food for the future; and the next five S-curve business fields of robotics, aviation and logistics, biofuels and biochemicals, digital, and medical hub.

“We believe our tax-exemption policy for venture-capital and private-equity trusts, and for start-ups, provides an opportunity and a challenge that surpasses what is on offer in other countries in the region. This will drive Thailand to become a regional innovation and start-up hub,” Deputy Finance Minister Wisudhi Srisuphan told the seminar audience.

Despite the traditional survival rate of only 10 per cent among new tech start-ups, the government’s policy offers a challenge for the Kingdom to move forward from a middle-income country to an innovation-based economy in the next phase of its development, said Vorapol Socatiyanurak, member of the National Legislative Assembly and former secretary-general of the SEC.

SEC assistant secretary-general Paralee Sukonthaman said the agency would take just 15 days to approve a licence for venture-capital operators and private-equity trusts under the tax-exemption scheme.

However, since the regulations came into effect, only one private-equity trust has applied for a licence to date, she said.

Narong Sirilertworakul, executive vice president of the NSTDA, said the agency would for its part take between one and two months to approve a new tech business in which such funding entities can invest, depending on which of the 47 technologies the start-up falls under.

Apisak, also a governor of the ADB, is participating in the annual meeting of ADB governors in Frankfurt at a time when uncertainties and volatility remain risks to the health of the global economy and financial markets.

Thanks to greater political stability and supportive fiscal and monetary policies, the Thai economy is rebounding and, like most economies hit hard by the global turmoil, will rely more on the domestic front to support growth, he said.

Apart from tourism and public spending, private consumption appears to be improving, he said. Both fiscal and monetary policies will continue to accommodate the economic recovery.

Thailand is working to promote its attractiveness as an investment destination, the minister said. Its business climate will be improved through tax and non-tax measures for investment this year. Incentives will also be granted to investment in industries such as next-generation automobiles, smart electronics, tourism, agriculture and biotechnology, food robotics, aviation and logistics, biofuels and biochemicals, digital and medical, which will be Thailand’s new growth engines.

“Not only are we seeking to strengthen growth, but we would also like to achieve growth with quality. For this reason, we also try to put in place policies to encourage green consumption and green investment in line with the widely recognised Sustainable Development Goals,” he said.

“In 2016, Thailand modified its excise-tax structure and, among many improvements, excise tax on automobiles is now collected based on carbon-dioxide emissions rather than engine power.

“As for public infrastructure investment, the government has been pushing forward essential investments in both hard and soft infrastructure.”

Apisak told his ADB counterparts that the Thai government had a Bt1.8-trillion investment plan for rail, road, air and waterway projects as well as intra- and inter-city transport systems.

There will be several channels for investors to take part in public investment, including the Thailand Future Fund and Public Private Partnership Fast Track. These investments will not only create jobs and boost demand, but will also help improve Thailand’s competitiveness in the long run, he said. Apisak also touched on Thailand’s new financial infrastructure, which will feature a national e-payment system and lead the country towards a fully developed electronic payment platform.

“This is a crucial step for Thailand as we aspire to progress towards a more modern economic development in which the digital economy is intertwined with the traditional economy.

“People and business will be encouraged to use electronic payments rather than cash through a reduction of the cost of paying electronically and also the expansion of access to electronic payment.