During the meeting Mr.Chaiwat Kovavisarach FTI Vice chairman (President and CEO of Bangchak Corporation., PCL) propose that its time for BOI to bring new scheme beyond tax incentive to promote innovation investment in Thailand.
He proposed that to develop the research and development into pilot plant investment,BOI should consider Israel Model that government support private SMEs by public-private joint venture promotion scheme.
“To make the investment of innovation industry success, its time for BOI to provide new scheme of promotion, as only tax incentive is not practical for innovation investment.” said Mr.Chaiwat.
He explained that the BOI promotion model to drive innovation investment success, BOI should set a public and private joint venture for SMEs who apply for BOI promotion.
The model Mr.Chaiwat propose that the joint venture model to make new technology possible in Thailand is government joining 70% and the other 30% invest by the pioneer SMEs having the innovation project apply for BOI investment promotion, any project that have big corporate joining the investment, the joint venture ratio would be government 50%, big company 30% and SMEs invest 20%.
Dr. Suvit Maesincee, Minister of Higher Education, Science, Research and Innovation said he agree with what Mr.Chaiwat proposed and that must be“Outcome Base Scheme” to support any SMEs who has potential innovation technology project that profitable. This support will be under the condition that
if the private SMEs failed to have the project achieve the goal of success, theyhave to return to government the fund.
In the meeting FTI chairman also requested Mr.Suvit to have MEHSI’s agencies to join support “Innovation Fund”(which FTI aiming for one billion baht in the initial stage) but Mr.Suvit said he will talk with Mr.Chaiwat Wiboonsawas, Chairman of Stock Exchange of Thailand (SET) to support the innovation fund by the scheme called “SET100 set The Future” to raise fund from the SET top 100 companies in capital market for Innovation Fund to support R&D for SMEs in innovation project.
FTI Chairman, Mr.Suphant also request Minister Suvit to talk with Minister of Finance to provide 300% tax reduction incentive for not only the big corporate but also any SMEs invest in R&D or the innovation machine and equipment.
Mr.Suvit accepted the request of FTI chairman and said he will talk to Minister of Finance and he believe that Finance Ministry will have no problem to provide the 300% tax reduction incentive to promote SMEs for innovation development business.