public-private collaborative committee : a new …...public-private collaborative committee : a new...
TRANSCRIPT
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
2
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
3
12 Working Groups on Public-Private Collaborative Committee
4
12 Working Groups on Public-Private Collaborative Committee
5
6
Discussion with Finance Minister regarding Tax Scheme
to support private sector under Public-Private Collaboration
6
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
7
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
88
9
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
11
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
12
13
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
14
Tourism and MICE Promotion
Update Concept & Quick Win Project
15
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
16
Export and Outbound Investment Promotion
Update Concept & Quick Win Project
Strategic Market Promotion Policy
Knowledge Tank
1 2 3
4
• 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%)
17
18
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
19
20
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
21
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.
22
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)
23
24
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
25
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
26
27
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)
28
FDI and Infrastructure Development
29
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
30
Upgrading Professional and Technician
31
Quick-win Projects
Standards & Certification
Center
Re-branding
Excellent Model School
Databaseof Demand &
Supply
Bilateral Integrated Database System
NQF 8
32
TechnicalVacational
Local Economic Development and
Pracha Rath Scheme
33
Update Concept & Quick Win Project
34
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
35
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
36
Basic Education and Human Capital Development
37
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
38
Update Concept & Quick Win Project
Increase Basic Educational Standard of 3,342 schools under Pracharath Scheme within 2016