Singapore-Thailand overall trade climbs 9.5% to S$34.5 billion in 2008 from S$31.5 billion in 2007.
Investors can consider business leads in six industries - agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services including entertainment, healthcare and tourism.
Singapore, Thursday, 16 July 2009 - The Singapore business community was updated on Thailand's economy as well as business opportunities at a seminar today jointly organised by the Singapore Business Federation (SBF), Thailand Board of Investment (BOI) and Thailand Convention & Exhibition Bureau (TCEB).
Gracing the Thailand Trade and Investment Forum were Mr. Tan Seng Chye, Vice Chairman of SBF's International Relations Committee and a former Singapore Ambassador to Thailand (1988-2000); and His Excellency Mr. Nopadol Gunavibool, Thailand's Ambassador to Singapore. Supported by International Enterprise Singapore, the half-day trade seminar was a follow up of a similar seminar that took place in August 2006.
Apprising over 70 participants from a myriad of industries including Chemical Trading, Banking, Consultancy, Construction Management, Industrial Park development, Logistics, Manufacturing, and Automotive were government and industry experts from Thailand BOI (Thailand's equivalent of Singapore's Economic Development Board), TCEB and regional human resource company, HRnetOne.
Giving participants an insider's perspectives were Thailand BOI's Ms. Chitra Kulvanich, Director, General Administration Bureau; and TCEB's Mrs. Supawan Teerarat, Exhibition Director & Acting President. Ms. Kulvanich informed participants how to break through the current economic challenges with intelligent investment, while Mrs. Teerarat gave tips on how to capture the ASEAN Market through an exhibition in Thailand. Sharing the experience of a Singapore company doing business in Thailand was Mr. Aekaraj Guruvanich, Regional Consultant, HRnetOne.
Thailand's investment policies focus on liberalization and encouragement of free trade. Foreign investments, especially those that contribute to the development of skills, technology and innovation are actively promoted by the government. With strong economic development and strong support industries, the country's industrial production has grown and diversified rapidly both in the long-established and newly emerging industries. The government has placed emphasis on attracting investments in six key sectors that have been determined as crucial to the country's developmental objectives. These six target industries include: agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services including entertainment, healthcare and tourism.
Mr. Tan said during his introductory remarks, "At the bilateral level, Singapore and Thailand enjoy warm and close relations at all levels. Bilateral relations are underpinned by the strong ties between Singapore and Thai officials cultivated through broad institutional linkages like the Thailand-Singapore Civil Service Exchange Programme (CSEP) and the Singapore-Thailand Enhanced Economic Relationship (STEER). Bilateral relations are being enhanced through increasing cooperation in the trade and investment, and tourism sectors, and cordial people to people relations."
"In 2008 Singapore was Thailand's 5th largest trading partner while Thailand was Singapore's 9th largest trading partner. Singapore is Thailand's 6th largest foreign investor with investments in areas mostly in chemicals, electronics, financial services, and real estate. Trade statistics from the Singapore Ministry of Trade and Industry indicated that total Singapore-Thailand trade has grown from S$28.2 billions in 2005 to S$34.5 billions in 2008," Mr. Tan noted.
His Excellency Nopadol Gunavibool, Thailand's Ambassador to Singapore, said during his speech, "We have a long-established bilateral trading history as well as close cultural and diplomatic ties. With GDP (at current prices) of approximately US$250 billion, and a large population of more than 66 million, Thailand offers huge opportunities for businesses to engage into the market."
"Although the global financial crisis has affected trade, as well as the trade exhibitions industry, the Thai government is sparing no effort to revitalize its economy and restore confidence as a major trading hub in ASEAN. Our Prime Minister, Mr. Abhisit Vejjajiva, has personally taken an active role in promoting and strengthening the promotion of trade and investment as well as the exhibition industry. Just last month, he visited Singapore, meeting with your Prime Minister, as well as key business leaders in various sectors. Today's forum will highlight Thailand's investment opportunities and attractive incentives, as well as the world-class exhibition venues and professional services that are available to support trade shows. I am confident you will find Thailand a good location for your investments and exhibitions," Ambassador Gunavibool added.
Mrs. Teerarat said, "As the global economic situation has far-reaching impact, many of exhibitions and trade shows have been extensively affected. TCEB, thus, is now focusing its strategy on the short-haul markets which Singapore is perceived to be remarkable in as it is the one of the key destinations in ASEAN in the area of exhibition. TCEB regards Singapore as one of the key strategic destinations to infiltrate and organise the trade forum program to offer more privileges among the exhibition professionals in Singapore in order to reduce business travel costs and push more business travel to Thailand." TCEB estimates that the business event industry in Thailand will bring in US$1.24 billion this year and attract half a million participants.
Ms. Kulvanich presented useful economic and business details for the participants' consumption. She informed them on the stimulus packages approved by the Thai government - the first in February 2009 (US$3.4 billion); and a second package which features 618 projects worth US$40.5 billion for the time period of 2010 to 2012. These projects cover irrigation; transportation and logistics; energy; telecommunication; fundamental tourism infrastructure; healthcare; education; people's welfare; science and technology; environment; tourism development; creative economy; and community development. She also gave an overview on BOI's zone-based incentives, tax incentives as well as non-tax incentives which include a one-stop shop for visas and work permits to be issued within three hours. In addition, BOI is offering a special package under Thailand Investment Year 2008-2009, which companies can apply for.
Thailand Investment Year package 2008-2009
Eligibility
- Any locations except Bangkok
- Applicable to designated activities only
- Application submission deadline: December 31, 2009
Target industries under special package
- Energy savings and alternative energy businesses
- High-tech businesses
- Environmentally friendly materials and products businesses
- Mega-projects related businesses
- Tourism and real estate businesses
- High-tech agro businesses
Incentives
- Import duty exemption on machinery
- 8-year corporate income tax exemption
- Additional privileges
- 50 per cent reduction of corporate income tax on net profit for five years after expiry of tax holiday.
- Double deduction of transportation, electricity and water supply costs as per condition, procedure and duration set up by the Board.
- Deduction from net profit for facility installation and construction costs but not exceeding 25 per cent of investment capital in addition to depreciation deduction.
The panel discussion
The panel made up of Mr. Tan, Ms. Kulvanich, Mrs Teerarat and HRnetOne's Mr. Guruvanich, Regional Consultant, heard participants' feedback on their experience doing business in Thailand where they faced red tape and ambiguous information on the taxes imposed on the exports and imports of Thailand - particularly when the goods are manufactured in Thailand but exported out for regional market consumption. To this, Ms. Kulvanich assured participants that they can refer their enquiries to Thailand BOI or the Thai Embassy in Singapore.
For more information on GBD-ASEAN events, please contact:
Ms. Loong Lai Yong
Executive, GBD ASEAN
Singapore Business Federation
Tel: 68276819
Email: markets.asean@sbf.org.sg
About Thailand Convention & Exhibition Bureau (TCEB)
Thailand Convention & Exhibition Bureau (TCEB) was expressly created as a vibrant, 21st-century,cutting-edge professional organization. TCEB's organizational design, with its flat and agile structure, facilitates rapid response, thus enabling the TCEB Team to deliver prompt and superior service, whilst achieving the highest level of operational efficiency and effectiveness. These are essential to Thailand's MICE competitiveness on the regional and global stage. TCEB promotes ethical and responsible business behavior based on its core values of customer enthusiasm, integrity, teamwork, innovation, continuous improvement, and responsibility. Knowledge sharing at TCEB has evolved over time. We become the standard-setters for the industry.
ANNEX
Quick facts on Singapore - Thailand trade
Singapore - Thailand Bilateral Relations
Over the past decade, Thailand and Singapore had enjoyed a good relationship in all dimensions. Many programs had been initiated to boost mutual cooperation such as the exchange of government officials, joint military exercises, and trade liberalization.
In February 2002, the Prime Ministers of both countries met and articulated the vision of "1 economy, 2 countries", to accelerate bilateral cooperation under STEER and set the ambitious targets to:
a. Double trade and investment flows between the two countries by 2010, through the development of special incentive packages for Singapore and Thailand joint ventures; and
b. Boost tourism in both countries from priority markets through joint promotion efforts, including attracting one million tourists from China to both Singapore and Thailand, as well as to other ASEAN destinations, within 3 years.
The Ministers took note of the significant progress made to consolidate and intensify co-operation between Singapore and Thailand since the inaugural STEER meeting in 2003, especially in the areas of Automotive Electronics, Financial Services, Trade and Investment Promotion, and Industrial Cooperation.
The Ministers endorsed a Strategic Roadmap for Enhanced Economic Partnership between both the government and business sectors in the designated priority sectors. The Ministers agreed that such synergies would enable both countries to respond better to the challenges and opportunities presented by the changing global environment. In addition, the Ministers tasked the Senior Officials to continuously review, refine and enhance the Strategic Roadmap, and to include other sectors of interest of the business communities.
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