Meanwhile, the ministry is revising the draft bill for the land and building tax after it was sent back by the Cabinet last week. The main idea of the proposed bill is to collect tax from the second home, not the first one. However, more details will wait until the Cabinet approves the draft bill, which might be next month, Finance Minister Apisak Tantivorawong said yesterday.

The ministry has no plan to extend the temporary measure that cuts the mortgage and transfer fee for the property industry. It expires at the end of this month.

The property market has already recovered and there is also the Baan Pracha Rath scheme to serve demand for residences in the lower-income market, he said.

“According to the strong demand for Baan Pracha Rath, state-owned banks such as the Government Housing Bank, Krungthai Bank and the Government Savings Bank have asked the Finance Ministry to expand the loans for Baan Pracha Rath if they need it and it does not affect their financial results,” he said.

The committee confirmed that of the 20 infrastructure projects, eight worth Bt56 billion were on time and 12 would be two to three months behind schedule.

Of the Bt80 billion budgeted for the water-management system, Bt60 billion is already used up. The remaining Bt20 billion will be spent during the rest of this year. The next Bt50 billion will be invested in a highway and a motorway.

“The government’s investment is part of maintaining the country’s economic growth at over 3 per cent this year,” Apisak said.

The steering committee has told all parties to spend their budgets to meet the target of Bt130 billion this year because if the investment is lower than that estimate, it will hold back the country’s economic growth.

Private sector

Not only will the investment by the government boost the economy, so will investment by the private sector.

According to a report from the Board of Investment, new applications in the first quarter of this year were ahead by 300 per cent from same quarter of last year.

Imports of machinery and raw materials to produce export products also increased in the first quarter. This is a sign that the private sector has confidence in the economy.

Low interest rates will also be a factor boosting private-sector investment during the rest of this year, Apisak said.

Developed under the auspices of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the agreement is designed to open up new development prospects for landlocked countries and areas facing the challenges of prohibitive costs and complex logistics to get their goods and services to market. By serving similar functions as ports away from coastal areas, such as consolidation and distribution centres, dry ports can create new economies of scale, reduce transport costs and generate employment opportunities for local populations.

The agreement was signed by 17 Asia-Pacific countries in November 2013 and itt came into force after eight of the 17 signatory countries became a party to it. China was the eighth country to approve the agreement. The other countries having deposited approvals of the agreement with the United Nations Secretary-General are Bangladesh, India, Kazakhstan, South Korea, Russia, Tajikistan, Thailand and Vietnam.

Escap said in a statement that the greement comes at a critical time in history, as Asia’s demand for efficient transport and logistics is growing, with the 61 per cent of the world’s population in the region generating 30 per cent of the world’s gross domestic product and an ever-growing share in the volume of goods traded worldwide.

The agreement is designed to promote international recognition of dry ports, facilitating investment in dry port infrastructure, improving operational efficiency and enhancing the environmental sustainability of transport. The network of dry ports defined through the agreement supports the Asian Highway and Trans-Asian Railway networks and ushers in greater prospects for the development of efficient international intermodal freight corridors.

The Agreement also signals a move to a more sustainable growth path as dry ports create the conditions for the much-needed shift of cargo flows from road transport alone to intermodal options. Using road services in combination with more energy-efficient, less polluting alternatives such as rail, short sea shipping and inland waterways will play an important role in ensuring a more sustainable and inclusive Asia-Pacific region.

Chartsiri is one of 12 business leaders who are closely working with the government under the Pracha Rath project to move the country towards being a value-based economy, nicknamed “Thailand 4.0”.

Chartsiri said the four agendas were enhancing competitiveness; a new platform for public-private partnerships (PPP); increased access to infrastructure; and attracting investment.

On the first agenda, his committee is working with the Pracha Rath steering committee on innovation and productivity headed by Kan Trakulhoon to accommodate research and development.

Chartsiri said his committee was keen on building “science cities” to host advanced industries in the future.

These science cities could be hubs for R&D, which will upgrade industry and accommodate the development of the bio-economy, a goal of the Pracha Rath steering committee on pushing new high-growth innovative industries.

The private sector would be responsible for the construction costs of the science cities, he said, adding that such facilities should be set up in industrial estates because of their complete utilities. The private sector will also use its networks to attract investors interested in R&D to serve the automotive, electronics, aviation, robotics and biotechnology sectors, he said.

The state should have incentives to support the private sector, especially the establishment of a one-stop service for investors and a “science-city fast track” programme, he said.

On the second agenda, the private sector agrees that PPP is a solution for infrastructure investment because each development requires a large budget, and the government has to maintain fiscal discipline.

For the period 2015-19, the government has announced 66 infrastructure projects with a total investment cost of Bt1.58 trillion.

According to Chartsiri, the private sector has collaborated with the government on four key areas for a new PPP platform.

First, the private sector will help lay out the conditions to encourage both local and foreign investors.

Second, a PPP should share risk appropriately for cost efficiency. For example, private companies will take on the risks of investment and management, while the government should look after a regulatory regime that supports ease of doing business.

Third, the committee believes the government should set up a Project Management Office to oversee the schedules of project development and the cost of projects.

Finally, the areas surrounding infrastructure projects should be developed as smart cities. He suggested that Laem Chabang in Chon Buri province and Chiang Rak Noi in Ayutthaya province could become ‘smart cities’.

According to the third agenda, the committee acknowledges that Baan Pracha Rath is a good example of helping people to access infrastructure, and this complies with the objective of reducing costs and social inequality.

“We hope the government will undertake a second phase of Baan Pracha Rath because low-income people want to own homes, and this programme will help around 2.7 million do so. The government should set aside sufficient credit for borrowers under Baan Pracha Rath, while developers [under the programme] should receive tax incentives,” Chartsiri said.

On the fourth agenda, the private sector will arrange events where foreign investors can meet authorities, he said.

A market-sounding seminar was held yesterday by the Office of Transport and Traffic Policy and Planning (OTP) to woo private investors for railway transport systems and commercial building complexes in the area.

The area is expected to bring in investments from private companies worth a total of Bt20 billion.

“The project, which the OTP has studied and designed at the initial stage, is to serve the transport network in Bangkok’s northern zone, in particular a number of new metro railway lines whose construction is expected to be complete in 2018,” said Deputy Transport Minister Ormsin Chivapruck Omsin Chiwaphruek. The seminar was attended by more than 250 people, representatives of both Thai and foreign companies as well as relevant state agencies.

The State Railway of Thailand as the authority responsible for the project will seek approval for private participation under the PPP law and then arrange for such participation via joint ventures and giving them rights for long-term land use.

At the seminar, it was explained that the project’s development would be divided into two parts.

First will be development of the transport infrastructure network and of its surrounding areas for commercial purposes, called Zone D, covering a total of 83 rai. There will be a 1.3-kilometre skywalk to link with the Bang Sue Central Railway Station, BTS’s Mo Chit Station and MRT’s Chatuchak Station, and another 1.4km skywalk to connect to bus stations, costing a total of Bt1 billion.

“The Zone D area, which has development potential for commercial areas totalling around 1 million square metres, is expected to draw in total investment of Bt20 billion,” according to a presentation at the seminar.

For the second part, there will be development of secondary mass transit including a Bus Rapid Transit (BRT) system with a maintenance centre on 7 rai to link with the Phaholyothin Transportation Hub Area.

The BRT project will be 10km in length with 16 bus stops, and will cost about Bt1.7 billion.

It will announce next week a giveaway project under which fifty vouchers, worth Bt800,000 each, will be given to tech start-ups.

Meanwhile, the Information and Communications Technology Ministry plans to spend Bt15 billion to lay down broadband Internet coverage to 30,000 communities nationwide within a couple of years.

Pichet Durongkavaroj, the science and technology minister, said that to drive start-ups the ministry would cooperate with 11 government agencies and the private sector.

Pichet said the Finance Ministry had set up a Competitiveness Fund, which would focus on five categories, namely healthcare, financial technology, agricultural technology, tourism, and digital technology.

He said the government would also provide privileges to the private sector to invest in start-ups via venture capital funds such as tax exemptions and capital gains tax.

He added that the government would develop a so-called Start-up District to provide knowledge and leverage for start-ups.

Neighbouring countries

The government also aims to help start-ups penetrate Cambodia, Laos, Myanmar, and Vietnam and other Asean markets.

Pichet said the ministry would set up the Start-up District at Siam Square in Bangkok and planned to establish other start-up districts upcountry such as in Chiang Mai province.

“The government aims to facilitate and create strength for start-ups in Thailand for their sustainable growth and to create competitiveness for the country as a whole,” he said.

ICT Minister Uttama Savanayana said his ministry planned to set up the Digital Economy Fund with a budget of Bt10 billion this year after the Digital Development Fund for the Economy and Society bill came into law.

The aim through the fund is to drive and support tech start-ups so they run smoothly and contribute to the economy and society.

The ministry will work with universities, such as Chulalongkorn University, King Mongkut’s Institute of Technology Lat Krabang, Bangkok University and Sripatum University, to set up a so-called digital incubator to boost industries like tourism, healthcare, robotics, and creative content.

Uttama said the government last week approved a budget of Bt15 billion to lay down the Internet broadband in 30,000 communities.

As a result, the minister said Internet broadband would cover 70,000 communities as it was already serving 40,000.

The government will announce the Bt800,000 |start-up voucher to provide “angel” funding to 50 tech start-ups next week at “Start-up Thailand 2016” at Queen Sirikit National Convention Centre in Bangkok.

The Cabinet last week approved three draft bills including one on computer-related crime, which includes amendments on what constitutes a computer crime as well as covering the relevant police authority and the compensation payments regulation for officials.

The second draft is for establishment of the Digital Development Fund for the Economy and Society, the Office of the Digital Economy and Society, and the Digital Development for the Economy and Society Committee.

The third draft covers the Organisation to Assign Radio Frequency and to Regulate Broadcasting and Telecommunications Services, which amends the National Broadcasting and Tele-communications Commission’s authority.

It also covers the abolishment of the NBTC and improvements in receiving permission to operate a frequency.

The three drafts will be submitted to the National Legislative Assembly next Friday.

Thailand now has between 1,000 and 2,000 start-ups.

Deputy Prime Minister Somkid Jatusripitak said after meeting WB officials that he had told them what the government had done to meet their ranking criteria, but pointed out that some reforms, such as the loan-collateral law, would not be implemented in time for the institution’s June 1 announcement of its annual ease-of-doing-business index.

The loan-collateral law will be effective from July 4.

“The [timing of the] implementation of some laws might affect our ranking for ease of doing business, but we have stressed to them what we have already done.

“Moreover, we have informed them about the overall state of the country’s reform programme, and the World Bank officials are happy with our execution [of regulatory changes] in respect of ease of doing business. Therefore, Thailand’s ranking should be upgraded either this year or next,” he said.

In the WB’s ease-of doing-business index, Thailand currently ranks 49th out of 189 countries.

The Pracha Rath public-private steering committee reported to Prime Minister Prayut Chan-o-cha last Monday that the target was to be ranked in the top 20 in 2018, after reforming outdated regulations that affect the business sector.

Somkid said he had asked the WB to work closely with the Finance Ministry in reaching its latest assessment of the Kingdom’s performance.

“We also informed the World Bank about our plans to balance the economy by focusing on domestic growth and upgrading small agricultural businesses to small and medium-sized enterprises. Moreover, we talked about the competitiveness of Thailand after establishing the East-West Corridor, [promoting] start-up business, and regulatory reform,” he said.

The WB is focused more on the growth of a country from the development angle, rather than concentrating on its gross domestic product, the deputy PM said, adding that for Thailand this meant developing the rural areas and SMEs, which are both areas currently being pursued by the government.

Somkid yesterday presided over a meeting at the Finance Ministry to receive progress reports from each state agency in relation to the ease of doing business.

“I have given them 8-9 points out of 10 for progress on the ease of doing business. Everything we discussed at the meeting will be translated into an English version and will be published on the government website, in order to promote ease of doing business among the public and private sectors,” he said.

Finance Minister Apisak Tantivorawong, meanwhile, said the government would organise an ease-of-doing-business event next month, giving each state agency the opportunity to make a commitment to the private sector regarding improvements in accommodating the business sector after adjusting their processes.

All state agencies must offer one-stop services to businesses, from business registration through to bankruptcy, he said.

One key one-stop service that has already been implemented is business registration, he said, adding that a similar service for employees’ monthly withholding tax and social-security insurance will be implemented next month.

Furthermore, a one-stop service facilitating the seeking of permission for construction or utilities work will be available from September 30.

The finance minister said the government was not only hoping for an improvement in its WB ranking, but also that the reform measures it is taking will – coupled with a better ranking – encourage more investment from both Thai and foreign investors.

“Several foreign investors have told me that many countries have similar tax incentives, so they will select an investment destination based on the ease of doing business and the living environment for their employees,” he said.

Many foreign companies, including a major automaker, are keen to establish international headquarters in Thailand as a base for supporting business expansion in the CLMV area (Cambodia, Laos, Myanmar and Vietnam), which is a good sign of the improved ease of doing business in the Kingdom, Apisak said.

Stop being ‘selfish’

Somkid has also called on private companies in the fishing sector to stop being selfish and help the government eliminate illegal, unreported and unregulated (IUU) fishing.

“We have to accept we have conducted illegal fishing in the past because of selfishness,” he said. “But now we are executing the European Union requirement to show that we are good boys who have seriously solved this problem.”

Somkid spoke to reporters at the Finance Ministry after the EU on Thursday warned Thailand that it could ratchet up the pressure on the country to get it to tackle illegal fishing.

He said the government was unable to predict what action the EU may take but Thailand was doing the right thing.