Public-Private Collaborative Committee : A New Sustainable Growth Path

Isara Vongkusolkit – Chairman of the Thai Chamber of Commerce

and Head of Public-Private Collaborative Committee

August 31, 2016

2On 3 December 2015, Deputy Prime Minister Dr Somkid Jatusripitak

invited Head of large Thai corporations to meet Prime Minister General Prayut Chan-O-Cha

to discuss how to drive Thai economy under Public-Private Collaborative Scheme

Background of Public-Private Collaborative Committee

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Reduce Inequality Improve Human Capability Increase Competitiveness

7 Drivers1. Innovation and Productivity Enhancement

2. SMEs & Start-up Promotion

3. Tourism and MICE Promotion

4. Export and Outbound Investment

Promotion

5. New S-Curve Development

6. Modern Agriculture / Farming Promotion

7. Revenue Generation and Spending

Acceleration

5 Enablers

1. FDI and Infrastructure Development

2. Upgrading Professional and

Technician Quality

3. Local Economic Development and

Pracha Rath Scheme

4. Law & Regulation Reforms

5. Basic Education and Human Capital

Development

Grand Strategy

4 Pillars1. Governance2. Innovation & Productivity3. Human Capital Development 4. Wealth Distribution

Objectives of Public-Private Collaborative Committee

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12 Working Groups on Public-Private Collaborative Committee

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12 Working Groups on Public-Private Collaborative Committee

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Discussion with Finance Minister regarding Tax Scheme

to support private sector under Public-Private Collaboration

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Isara Vongkusolkit, Head of Public-Private Collaborative

Committee discussed with Finance Minister (Apisak

Tantivorawong) on July 25 regarding tax scheme as

follows:

1. Donation to support projects of 12 working groups

under Public-Private Collaborative Committees

2. Operating / Administration Expenses of 12 working

groups

3. Formulation of Social Enterprises : Pracharath

Raksamakki Thailand and Pracharath Raksamkki

Provincial

4. Tax measures to support R&D Consortium

5. VAT Refund for Tourist at point of sales and Border

Trade

Approved in principle of Tax Measure to support Social Enterprise

Cabinet Resolution dated March 15, 2016

Case I

100% of Profit Contributed to Social

Case 2

At least 70% of Profit Contributed to Social

Social Enterprise

- Corporate Tax Exemption

Social Enterprise

-

Corporate who support SE

- Expense Deduction no more than 2%

of Net Profit

Corporate who support SE

- Expense Deduction no more than 2% of Net

Profit

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Cabinet Resolution dated August 2, 2016

Approved Tax Measures to support SME

1. Corporate Tax Incentive to promote SMEs Business (Big Brother)

2. Corporate Tax Incentive to promote investment in Rural Area

Tax Deduction 200% but no more than 10% of net profit

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Innovation and Productivity Enhancement

R&D expenses can be used for tax deduction of 300%10

- Increase Nation’s Competitiveness

- Reduce Inequality

- Step out from Middle-Income Trap

Large corporation

R&D System

Social Enterprise

Objective: Boost Innovation and Productivity

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SMEs & Start-up Promotion

SME

Startup/IDE

SE

Big Brother (พชวยนอง)

สงเสรม SME เขาถงแหลงเงนทน

SME Connect to the world

- SME Matching Day- SME Expo 4 ภมภาค- Marketplace for SME- การพฒนาธรกจครบวงจร- พฒนาองคความร / Case Study

To support and promote government policy to achieve in:

- Increase GDP of SME to 50%- Increase Export Value of SME by 5%- Promote 50,000 New SMEs a year

E-Commerce

Start Up Runway

Support Local Economy by Community Based Tourism

SE Marketplace

SE Facilitation Services

SE Funding

Start Up 101

Start Up Data Base

• Collective Intelligence for Thailand Startup Ecosystem

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Big Brother (พชวยนอง)Objective

- To promote SMEs of which sales revenue more than 50 million baht a year and encourage/support them to increase their revenue to more than 100 Million Baht. By supporting in strategy-business plan formulation and focusing on product and service development, finance and accounting and marketing

Sample of Acitivities- SME Matching Day- SME Expo in 4 Regions- Marketplace for SME- Integrated Business Development - Knowledge Management / Case Study

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Tourism and MICE Promotion

Update Concept & Quick Win Project

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Summary of issues to promote Tourism

Activities topromoteIncome

distribution

1

Develop tourism attraction to

create community’s

revenue

2

Infrastructure

4Standard-

Safety-Security-

Hygiene for sustainable

tourism

5

Thailand’s Conference Destination

Thai Pride

Re-Design old town

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Export and Outbound Investment Promotion

Update Concept & Quick Win Project

Strategic Market Promotion Policy

Knowledge Tank

1 2 3

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• Team Thailand +

• Provide Local Consultants to

support overseas trade and

investment

• Border Trade

• Big Brother

• Press Release

• Release Trade Regulations

• Trading Nation

• TPP

• F/X Stabilization

• Set up Private Intelligence Unit to support

overseas trade and investment

5% Export Value Growth

(at least 2%)

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New S-Curve Development

5+5 TARGETED INDUSTRIES

First S-Curve :

Enhance current industries to

continue the growth

New S-Curve :

Develop future Industries to achieve

the leap growth of Thai economy

• Next-Generation Automotive • Robotics

• Smart Electronics • Aviation & Logistics

• Affluent, Medical & Wellness

Tourism

• Biofuels & Biochemicals

• Agriculture & Biotechnology • Digital

• Food for the Future • Medical Hub

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Modern Agriculture / Farming Promotion

Modern Agriculture Initiatives

Main Crop

(Rice, Cassava, Cane, Palm, )Poultry Livestock

Aquatic Animal (Shrimp, Sea Bass,

Tilapia)

Cash Crop

Objectives

• Reduce Inequality

between Agricultural

Sector and Non-

Agricultural Sector

• Promote Smart Farmer

• Increase Competitiveness

Short Term Initiatives

1. Combine Land Plots aimed to be Modern

Farming

2. Strengthen Cooperatives to be more competent

3. Promote Cash Crop

Long Term Initiatives

4. Set up National Breeding Center /

National Variety Center

5. Develop IT Application for Farmer

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Modern Agriculture Projects (43 Farms Covering 30 Provinces)

Private Companies: Mitr Phol Group Thai Beverage Siam KubotaCP IntertradeBangsue Jea Meng Rice Mill Ratchasima GreenThai WahDairy HomeCPFBetragroThai UnionSea ValueThai Chamber of Commerce and etc.

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Aquatic

Animal

Yield per Rai Revenue

Increse

Before Existing (Per Rai)

Tilapia&Shrimp 180 ton/yr 720 ton/yr 10.8 MB/yr

Sea Bass 810 ton/yr 1,620 ton/yr 24.3 MB/yr

Thai Union Group provided

knowledge and technology of

shrimp farming by feeding

together with Tilapia fish. Output

can be increased by 400%

Tilapia Fish (ปลานล),Vannamei Shrimp (กงขาว)

& Sea Bass In Bann Sang Pattana (Prachinburi Province)

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Vannamei Shrimp (กงขาว)

Aao Kungkaben, Chantaburi Province

Supported by CPF

Technique Proportion of Pond Farm

Feeding Pond Reserve Pond

Before 80% 20%

New 20% 80%

Reduce baby shrimp

and increase survive

ratio to 85%

Increase Output from

1 ton/rai to 2 tons/rai

Rice Drop Method (Phon Ka, Sisaket Province)

Bang Sue Jia Meng Rice Mill promotes effective rice farming by changing farming method from

paddy-sown to rice drop method. This will reduce rice variety and lead to cost reduction by 662

Baht/Rai or 27.6%

Rice Drop Method gains output 559 Kg/Rai comparing with Paddy-Sown 451 Kg/Rai or increase

by 108 Kg/Rai or increase 24%

Cost of Paddy-Sown Cost of Rice Drop

Variety 650 Baht/Rai Variety 286 Baht/Rai

Plow 650 Baht/Rai Plow 479 Baht/Rai

Sow Cost 80 Baht/Rai Drop Cost 200 Baht/Rai

Weed Chemical 290 Baht/Rai Weed Chemical 192 Baht/Rai

Fertilizer 790 Baht/Rai Fertilizer 641 Baht/Rai

Harvestor 600 Baht/Rai Harvestor 600 Baht/Rai

Total Cost 3,060 Baht/Rai Total Cost 2,398 Baht/Rai25

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Cash Crop TCC:

“Community Product”

to Modern Trade

Standardization of Cash Crop Production under “Thai

GAP” and “Primary GAP” for Food Quality, Safety

and Traceability to serve Market’s Requirements

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Revenue Generation and Spending Acceleration

3. “Mae-Sod,

Retail and Wholesale Center

3 Major Projects

1. Re-Design Ayuthaya 2. Community Product

| CLMMV

Double GDP

Step out from Middle-Income Trap

Increase GDP per Capita from $5,900 to $12,000

Tourism | SMEs & Community

Update Concept & Quick Win Project

Promote Tourism, Trade and Agriculture Business (35-40 % of GDP)

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FDI and Infrastructure Development

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Objectives

Update Concept & Quick Win Project

PPP New Framework

• Persuade Overseas

Investment to uplift Thai

industry and to promote

Thailand as a Land-

based ASEAN Center and

Center of CLMV

• Develop Thailand’s

infrastructure as a new &

modern platform in order to

reduce inequality, to be a

network of regional and

increase Nation’s

Competitiveness

Create New Platform

Increase Competitiveness

Investment Destination

ProjectManagement

Office

Smart City

Science City

Investors MeetAuthorities

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Upgrading Professional and Technician

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Quick-win Projects

Standards & Certification

Center

Re-branding

Excellent Model School

Databaseof Demand &

Supply

Bilateral Integrated Database System

NQF 8

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TechnicalVacational

Local Economic Development and

Pracha Rath Scheme

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Update Concept & Quick Win Project

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Objective

Focus Area

Measures

Create revenue to Community and bring happiness to Thai

AgricultureProcessing Community’s

Tourism

Upstream Midstream Downstream

Pracharath Raksamakki Thailand (SE) to drive min 18 provinces

Accessible toProduction

Input

KnowledgeManagement

MarketingCommu-nication

Management

Law & Regulation Reforms

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Regulatory Reform5 Quick Wins

TargetCompetitiveness

Ease Of Doing Business

Efficiency

1. Customs

2. Food & Drug

3. Immigation

4.EIA/EHIA

5. City Layout

Revision & Cancellation of Unnecessary Law or obstruct business operation

Target

Cancellation of 5,000 Law

Improve Ease Of Doing Business = Top20

Update Concept & Quick Win Project

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Basic Education and Human Capital Development

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10 Transformation CONNEXT ED Education Hubs

• Installation of ICT infrastructure and Internet development for 3,342 schools

• Twelve CONNEXT ED participating agencies forming leadership platforms

• Development of education excellence partnership in R& D to support youth innovation

• Development of school websites • School Partnerships led by CEO of twelve participating agencies to sponsor and provide counsels to school partners.

• Assembling STEM activities from agencies as best practices for scientific promotion• Curriculum upgrading and

development

• Establishment of School Funds in all schools

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Update Concept & Quick Win Project

Increase Basic Educational Standard of 3,342 schools under Pracharath Scheme within 2016