LAUNCHPAD
TBY talks to Dr. Pichet Durongkaveroj, Minister of Science and Technology, on the initiatives to boost innovation in the country, facilitating greater private investment, and fostering mutually beneficial partnerships with countries.
BIOGRAPHY
Dr. Pichet Durongkaveroj is the Minister of Science and Technology, having previously served as Secretary General of the National Science Technology and Innovation Policy Office, Ministry of Science and Technology. He has a PhD in public policy and management from the University of Pennsylvania.What role does the Ministry of Science and Technology play in promoting innovation and start-ups across Thailand?
Thailand has realized it needs to be strategic. We have to provide an ecosystem that is conducive to investment and develop Thailand as the gateway for manufacturing and trading with the region and beyond. Given that we have a number of competitive advantage factors, including our rich agricultural output, substantial human resources—a 70-million strong population—and strategic location, we are well positioned to make use of the growing opportunities in the region. Moving forward, innovation across all industries is vital for our growth, including manufacturing, start-ups, tourism, water management, and so on. In this sense, government policy and instruments are important in leading and facilitating innovation. For example, in the start-up movement, which is still relatively new in Thailand, the government will assist as much as possible this year and in 2017 before the private sector comes in. In April, we held the Start-up Thailand 2016 event, from which we realized we have potential scattered across our economy and the role of the government is to set up an ecosystem to help them launch and grow from an early age. We also work closely with the Ministry of Finance to introduce a number of fresh tax incentives for start-ups, and are in the process of establishing a start-up grant fund to fill in the gaps until the private sector moves in.
What are the ministry's goals in terms of national spending on R&D?
Our current R&D expenditure for 2015 is 0.48% of GDP; however, in 2016 we would like to almost double this to 0.8%, which is a significant jump. Personally, I will try to push this figure to 1% because statistically, most developed economies go beyond 1%. After 1%, this process becomes much easier and smoother; it has the momentum to also boost a country that borrows or copies others' technology into a country that protects its intellectual property. Having said that, we also recognize that we need to get the private sector to contribute 70% of the 1%; this is our policy, and we put in a great deal of effort to encourage and facilitate our private sector to invest. This can be done through taxation, where we have a scheme in which we provide 300% tax incentive for those companies who invest in research—anything that falls into the category of research, development, or innovation, and across all sectors. In the past, it was only R&D but now we have expanded to include innovation as well. The target for the private sector is 70%, and we work with BOI, whose strategies and privilege offer the largest benefits to companies who do research and innovation.
How would you categorize Thailand's international outlook from the ministry's perspective?
The outlook is extremely bright. The countries that we met and discussed with did not talk about a trading partnership but about establishing a strategic partnership, which is important to us. We do not just deal with trading; we talk about how we can cooperate in the long run to ensure good mobility between the countries and healthy partnership in sectorial trade and industries. We look to boost our international cooperation, particularly in the fields of transportation infrastructure and digital connectivity as they are in line with the priorities of this government. However, each country has its specific characteristics and strategic interests for us. For example, in Russia, we focus primarily on collaborating on the space program or using nuclear for peace such as for medical and industrial goods. The Chinese, on the other hand, are keen to help us develop our start-ups and open labs, as well as issues such as food security. In every country that we visit, through collaboration in research and innovation, we can help our partner countries to expand to CLMV markets, and given the growth potentials in the region, this presents a huge opportunity to them.
LAUNCHPAD
TABLE OF CONTENTS
Review: Diplomacy
The Times are Changing
The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.The West may have taken a dim view on the 2014 coup, but China has been less judgmental about Thailand's domestic policy and the two countries have grown closer over the past couple of years.
read articleGuest Speaker
HE Maithripala Sirisena, President, Democratic Socialist Republic of Sri Lanka
TBY talks to HE Maithripala Sirisena, President of the Democratic Socialist Republic of Sri Lanka, on celebrating 60 years of relations with Thailand, boosting bilateral trade, and potential opportunities with the AEC.
read articleFocus: Special Economic Zones
Zone Home
With numerous upcoming major trade deals like the TPP and CAFTA, in addition to Thailand joining the ASEAN Economic Community, the country is developing a host of strategically located and incentivized SEZs to take advantage of the upcoming opportunities.
read articleFocus: Auto Sector
Driving Force
A combination of slower global economic growth and weaker domestic purchasing power suggests that Thailand's renowned automotive sector is heading for flat growth in 2016, thereby encouraging the government to promote cutting-edge innovation across the industry.
read articleFocus: Gems & Precious Stones
Shine Bright
As a key driver of the economy, Thailand's vast manufacturing sector comes in different shapes and sizes—and colors, for that matter. One segment to have really emerged as a sparkling export opportunity over the past two decades has been the country's gems and precious stones industry.
read articleInterview
Dr. Pichet Durongkaveroj, Minister, Science and Technology
TBY talks to Dr. Pichet Durongkaveroj, Minister of Science and Technology, on the initiatives to boost innovation in the country, facilitating greater private investment, and fostering mutually beneficial partnerships with countries.
read articleFocus: E-Commerce
Down the Wire
In 2014, when Chinese e-commerce giant Alibaba made headlines for listing the largest global IPO in history (USD25 billion), many had come to recognize that the industry, which was typically dominated by Silicon Valley heavyweights, was gravitating drastically eastward.
read articleInterview
Anantachai Kunanantakul, Chairman & CEO, Siam Eastern Industrial Park (SEP)
TBY talks to Anantachai Kunanantakul, Chairman & CEO of Siam Eastern Industrial Park (SEP), on the development of the park, the benefits on offer, and plans to further develop the country's eastern seaboard.
read articleInterview
Kan Trakulhoon, Head of Working Group , Eastern Economic Corridor (EEC)
TBY talks to Kan Trakulhoon, Head of Working Group of the Eastern Economic Corridor (EEC), on the background of the EEC project, the government's push to build up infrastructure in the country, and his projections for the coming year.
read articleFocus: Water Shortage
A Drop At a Time
In 2016, many Thai's across the Kingdom will be looking out for weather forecasts—rather than economic ones—as the key indicator for the country's economic sustainability. Water is becoming an increasingly precious global commodity as populations and temperatures increase.
read articleReview: Education
Many Brains to Gain
Thailand has long suffered from an ineffective education system, with a large number of dropouts and graduates not equipped to deal with the demands of the 21st century. However, the government has been taking actions in a bid to get serious about much-needed education reform.
read articleInterview
Weerasak Kowsura, Board Chairman, Thailand Convention & Exhibition Bureau (TCEB)
TBY talks to Weerasak Kowsura, Board Chairman of the Thailand Convention & Exhibition Bureau (TCEB) & Board Chairman of Designated Areas for Sustainable Tourism Administration (DASTA), on the country's booming MICE industry and the benefits of community-based tourism.
read articleInterview
Proudputh Liptapanlop , Executive Director, Proud Real Estate
TBY talks to Proudputh Liptapanlop and Pasu Liptapanlop, Executive Directors of Proud Real Estate, on the company's development plans for Hua Hin, the prospects of the industry, and their expectations for the future.
read article