1. CONTENTS
April 2015
Volume 25
No. 4
Page
New Era of Enhanced
ASEAN-Japan Partnership
1
News Bites / BOI Net Applications 2
Thailand Gains on Legatum
Prosperity Index
4
Industry Focus: Alternative Energy 5
A Haven for Savvy Investors 7
The EIU Worldwide
Cost of Living 2015 report
8
Turn Creativity into Digital Economy 8
Company Interview: Energy Absolute 9
BOI’s Missions and Events 11
Thailand Economy-At-A-Glance 12
Continued on P. 3
New Era of Enhanced
ASEAN-Japan Partnership
There is anticipation that more foreign direct investment (FDI) will flow into
Southeast Asia, especially into infrastructure and innovative products, once the
ASEAN Economic Community (AEC) becomes fully effective at the end of this
year. At a seminar on “Opportunities in a New Era of Enhanced ASEAN-Japan
Partnership”, noted economists and academics from across Southeast Asia
and from Japan agreed that the AEC would be the largest single market in the
region and open opportunities to link its members to the rest of the world. That
would challenge foreign interests to invest more into the regional grouping. The
Toshiba International Foundation (TIFO), the Federation of Thai Industries (FTI),
and Thai Chamber of Commerce (TCC) organized the event with support from
Chula Global Network, Chulalongkorn University and Graduate School of Public
Policy, University of Tokyo, Nation Multimedia Group and Asia News Network
(ANN).
The aim of the symposium was to explore a new paradigm of cooperation
between ASEAN and Japan and identify the most effective approach to
achieving it. Furthermore, the conference surveyed ways to maximize human
capital potential as well as to enhance institutional capacity, which underlines
a path towards greater development, and also to create a sustained and
equitable society over the long term. Similarly, the question of how the concept
of “advanced-stage development in Asia” should be defined, operated and
implemented was discussed.

2. NEWS BITES BOI NET APPLICATIONS
Moving toward Green
Manufacturing
More than 10,000 factories have joined a
project to develop themselves into green
industries. The Ministry of Industry will
encourage people to consume products
and services that have been produced from
environmentally friendly manufacturing
processes. At the same time, the Ministry will
urge factories to attach greater importance
to environmental conservation and safety
standards, under the Green Industry
Thailand project, which is intended to
encourage industries in the country to be
more environmentally friendly and focus
more on social responsibility for sustainable
development.
During the past three years, a total of 11,375
factories have joined the Green Industry
project, which concerns sustainability and
environmentally friendly production.
Preparing for ASEAN
Community
Thailand is preparing for the ASEAN
Community 2015 and the special economic
zones in border areas of the country.
At a meeting of the National Committee
on Skill Development and Coordination
of Occupational Training, Deputy Prime
Minister and Defense Minister General Prawit
Wongsuwon noted that human resource
development is crucial for driving Thailand’s
economy, which is growing together with the country’s industrial
expansion. The Ministry of Labor has set up an ASEAN Division,
and through the Department of Skill Development has set a
target to develop communication skills in English and ASEAN
languages for 21,480 workers and entrepreneurs.
Thailand Developing into MICE Center in
ASEAN
Thailand Convention and Exhibition Bureau (TCEB) is proceeding
with its plan to help various educational institutions develop an
international standard MICE curriculum. This will help the country
become a MICE Education Center in ASEAN.
TCEB has so far joined 50 educational institutions in MICE
curriculum development. It is expected that 5,000 MICE
personnel at an international standard will be produced each
year, which would help expand the labor market for the MICE
industry. TCEB foresees that in 2015 Thailand will welcome more
than one million international MICE visitors, which will bring in
about 106.8 billion baht.
Thailand has combined space of more than 460,000 square
meters that can be rented for exhibitions, now the largest in
2013
(US$ = 30.06THB)
2014 (Jan-Feb)
(US$ = 32.65 THB)
2015 (Jan-Feb)
(US$ = 32.57 THB)
Number of
projects
Value
Number of
projects
Value
Number of
projects
Value
Total Investment 2,237 34,335 170 1,901 107 539
Total Foreign Investment 1,132 16,227 121 1,449 50 88
By Sector
Agricultural Products 64 742 2 13 2 2
Minerals / Ceramics 28 1,144 4 48 4 25
Light Industries / Textiles 59 327 4 8 1 2
Automotive /
Metal Processing
378 7,668 37 508 12 31
Electrical / Electronics 207 2,784 22 14 13 13
Chemicals / Paper 124 722 14 683 4 4
Services 272 2,838 38 173 14 12
By Economy
Japan 562 8,746 61 532 15 20
Europe 132 972 17 95 8 9
Taiwan 53 216 5 11 6 14
USA 55 359 3 299 3 1
Hong Kong 39 624 8 65 2 3
Singapore 93 704 11 67 7 8
By Location
Central 766 7,284 62 141 43 217
East 711 11,502 69 1,443 28 111
South 103 2,013 9 73 5 23
Unit: US$ Million
Note: Investment projects with foreign equity participation from more than one country are
reported in the figures for both countries.
ASEAN. There are also several major international convention
centers in Thailand, such as IMPACT Arena in Bangkok and the
Chiang Mai International Convention and Exhibition Center in
Chiang Mai province.
Special Economic Zones
The Board of Investment approves the proposal of the Special
Economic Development Policy Committee and announces 13
groups of activities now eligible for additional incentives if located
within a special economic zone: agro-industries, fisheries and
related businesses; ceramic products; textile, clothing and leather;
furniture; gems and jewelry; medical devices; automotives,
machinery and parts; electronics and electrical appliances;
plastics; pharmaceuticals; logistics; industrial estates; and
businesses that support tourism. These activities can be eligible
to receive maximum incentives of 8-year corporate income tax
exemption and an additional 5-year 50% CIT reduction.
April 2015
Page 2

3. Continued from P. 1
Continued on P. 4
A more recent initiative suggests that ASEAN
countries must look beyond 2015. Along-term outlook
is whether many ASEAN member states would be
able to graduate from the middle-income stage and
move towards the status of newly industrialized
countries. Indeed, “ASEAN connectivity” is to function
as the key propellant of the AEC as it will expand
trade and commerce by reorganizing supply chains
across the region. As a result, the quality of regional
infrastructure, particularly the implementation of the
latest technologies and systems, will be paramount
to the success of the AEC. Already there exists the
East-West corridor, North-South corridor, maritime
corridor, and new economic corridors, like the Dawei
project in Myanmar. Still, each ASEAN member is
responsible for ensuring a transparent economic
environment.
Mr. Hiroshi Watanabe, governor and chief
executive officer of the Japan Bank for International
Cooperation, declared that ASEAN and Japan needed to decide
on a number of critical issues regarding future cooperation.
The first thing to consider is whether they should work together
on a bilateral agreement basis - ASEAN-Japan - or under a
multilateral agreement. For the latter, he cited a possible ASEAN-
Japan-China model, as Tokyo already cooperates successfully
with Beijing on a wide range of economic matters.
For Mr. Watanabe, maintaining an effective and relevant ASEAN-
Japan partnership revolves around several interrelated themes,
such as how to keep an efficient supply chain, how to enhance
connectivity in the region, how to mobilize private capital in the
region, how to set a good standard for financing and channeling
resources, and how to increase the food supply to match
expanding demand.
It was pointed out during his presentation that ASEAN would
have to decide on whether to keep a single intra-regional chain
or accept a double one with China alone. Similarly, in order to
strengthen connectivity across Southeast Asia there needs to
be more promotion of cross-border projects, equitable sharing
of responsibility for the development of the ASEAN Economic
Community, and greater institutional linkage that would result
in system harmonization. Mr. Watanabe also remarked that
the mobilization of private capital in the Asia-Pacific region is
essential for the economic advancement of the entire ASEAN
community. Accordingly, such action hinges on the effective
utilization of the Tokyo stock market and the injection of capital
by ASEAN banks for investment purposes. Indeed, Japanese
financial institutions will act as a guarantor of these funds.
Likewise, sharing common best practices in PPP operations,
emphasizing agricultural technology transfers, and encouraging
on-site processing of agricultural produce will heighten regional
manufacturing efficiencies, industrial capacities, and deeper
multi-sectoral integration. The AEC holds a bounty of promise.
Recently, Japan has urged ASEAN members to develop their
connectivity, especially cross-border transportation and logistics
services, to strengthen regional competitiveness and pave the
way for further Japanese investment. Experts said countries in
Southeast Asia needed to improve their connectivity, especially
overland and across borders, and that the region should enhance
logistics services to cope with more investment from Japan in the
long-term. “Japan has been investing in ASEAN for more than 40
years, and ASEAN is its largest production base. Therefore, we
are now talking about how to support ASEAN [countries] to build
their connectivity to cope with further investment from Japan,”
said Masahiro Kawai, project professor at the University of Tokyo.
Economists and other experts offered views for countries
on how they should identify and create a new paradigm for
advanced development in ASEAN, as the region approaches full
implementation of the ASEAN Economic Community at the end
of the year. Japan stands ready to support Thailand in building
quality infrastructure as well as carrying out technology transfers.
“ASEAN economies can be developed from the existing land
[transportation] system, such as a corridor linking Myanmar,
Thailand, Laos and Vietnam,” added Akihiko Uchikawa, minister
at the Embassy of Japan in Thailand.
Ms. Sunanta Kangvalkulkij, deputy director-general of the
Department of Trade Negotiations at the Ministry of Commerce,
said ASEAN already had signed free-trade agreements, with
China, Japan, India, South Korea, and Australia and New
Zealand. This opened opportunities for trade and investment in
ASEAN. Additionally, she mentioned that AEC 2015 will present
challenges to Southeast Asia. For instance, the elimination
of non-tariff barriers (which actually are increasing rather
than decreasing), removal of behind-the-border impediments
(customs, product inspections, immigration), improvement of
regional trade facilitation (e.g. AFTA), alignment of domestic laws
with ASEAN’s common market commitments, and narrowing of
the development divide.
What is interesting is that an AEC post-2015 vision is being
discussed now at the governmental level. The AEC is a single
platform creation but the concept can be expanded and adjusted
to meet the demands and challenges of an ever-evolving global
marketplace. As a result, the services sector must be deepened
and extended. By embracing greater liberalization, more trade
and investment prospects will emerge across Southeast Asia.
ASEAN needs to be relevant to the New Economy. Therefore,
it becomes imperative to develop effective public-private
partnerships that focus on cross-border trade activity and further
market integration.
Mr. Fukunari Kimura, chief economist at the Economic Research
Institute for ASEAN and East Asia, told the symposium that
Japan really did not need high-speed connectivity between Thai
cities or within the region at the moment, but required efficient
and quality logistics services, which would significantly reduce
time-costs and strengthen the production system. “As many
April 2015
Page 3

4. Continued from P. 3
Japanese firms have a production base in the region, they need
advanced logistics management. If ASEAN can meet that need,
it should help strengthen both Japan and ASEAN,” Mr. Kimura
explained.
During his keynote address, “Enhancing ASEAN/Japan
Partnership in a New Paradigm of AEC Post-2015”, Mr. Kimura
asserted that the regional grouping must promote connectivity
and innovation both within the economic bloc and within the
individual national economies. Indeed, ASEAN has presented
a novel development model that has taken advantage of the
mechanics of production networks. This is in reference to the
second unbundling, where manufacturing is spliced and diced
into separate fragments that can be spread around the globe.
Additionally, Mr. Kimura declared that it is essential that ASEAN
step up the development ladder and address geographical
and industrial gaps. Such fissures can be dealt with through
connectivity and innovation. Plus, agglomeration and dispersion
are the main forces at work in today’s new economic environment
and businesses exploring opportunities in ASEAN must take
them into account.
Japan and the ASEAN bloc have worked together for decades
and the “special relationship” that exists between them is crucial
for the continued progress and prosperity of all concerned
parties. Mr. Kimura identified “four pathways” that must be
pursued in order to elevate ASEAN-Japan cooperation. First,
ASEAN needs to become more competitive and enterprising.
These qualities can be actualized through better market
integration, connectivity, and human resource development.
Actually, investment in the expansion of human capital should
be recognized as the cornerstone of sustainable development
for the region. Secondly, ASEAN needs to draft and implement
policies that cultivate an economic environment of inclusivity,
particularly for SMEs. Thirdly, ASEAN needs to create and follow
market strategies that are sustainable and ensure the economic
security of the community in areas like energy, food, macro- and
micro-financial stability. And finally, there needs to be dynamic
equilibrium between the centrality of ASEAN and ASEAN’s
strategic partners. In conclusion, Mr. Kimura proclaimed to the
audience that the AEC is a process, not an end.
Thailand stands literally at a crossroads. It is a member
of the ACD (Asia Cooperation Dialogue), BIMSTEC (Bay of
Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation), ACMECS (Ayeyawady-Chao Phraya-Mekong
Economic Cooperation Strategy), GMS (Greater Mekong
Subregion), and the IMT-GT (Indonesia–Malaysia–Thailand
Growth Triangle). Because of its geographical location, the
country naturally functions as a regional hub of connectivity, a
veritable multimodal corridor linking ASEAN with not only the
broader Asia-Pacific but also the rest of the world. Indeed, the
development of transportation and logistics is critical to the
concrete actualization of the AEC. Yet this mission will require the
active support and involvement of the Japanese.
Japan always has played a very constructive role in the ASEAN
region since 1973, when it established informal dialogue relations
with the organization. No one can deny that Japan will continue
to be an integral part to the future development of ASEAN, but
how Japan’s role will evolve in the years to come is still a big
question. Fortunately, ASEAN and Japan have just celebrated
40 years of close partnership, so the expectation exists that this
relationship will remain very productive, healthy, and necessary
to the progress and prosperity of ASEAN and its individual
member states.
Thailand Gains on Legatum
Prosperity Index
The Legatum Prosperity Index, an annual ranking of 142
countries by the Legatum Institute, now in its 6th year, has
released its 2014 rankings. The Index measures factors such as
wealth, economic growth and quality of life. Thailand is ranked
51st, improving by one place since last year. In comparison to
other countries in Asia, Thailand ranks among the top-10.
Thailand’s best indicator is in economics, where it ranks 13th.
This sub-index measures countries’ performance in four key
areas: macroeconomic policies, economic satisfaction and
expectations, foundations for growth, and financial sector
efficiency.
“The 2014 Prosperity Index provides a lens through which to
view a comprehensive assessment of national success. The
Index measures the broad set of indicators that tell us not only
how nations perform economically but in vital areas of education,
health, freedom, opportunity, social capital, and more. The
Prosperity Index covers 142 countries in the world, accounting
for 96 per cent of the world’s population and 99 per cent of global
GDP making it the most comprehensive tool of its kind” wrote
Stan Hansen, Executive Director of Legatum Institute.
In addition to scoring well in the economy sub-index, Thailand
also scores well under social capital. This sub-index measures
countries’ performance in two areas: social cohesion and
engagement, and community and family networks. According to
Legatum, “A person’s wellbeing is best provided for in a society
where people trust one another and have the support of their
friends and family, and this also encourages increases in per
capita income. The Social Capital sub-index measures countries’
performance in two areas: social cohesion and engagement, and
community and family networks.”
Thailand continues to make progress in the annual rankings
and with new investment policies in place and a government
committed to strengthening infrastructure and the overall
economic environment, the time to invest in Thailand is now.
April 2015
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5. Continued on P. 6
INDUSTRY FOCUS
Alternative Energy
As a country, Thailand benefits from strong year-round solar
radiation with the largely rural northeast Isaan region benefitting
most. The combined solar potential areas account for around
14.3% of the country’s overall area, gaining average daily solar
exposure at around 19–20 MJ/m2 per day, while the other 50% the
country gains around 18–19 MJ/m2 per day. With such potential
in abundance, solar power in Thailand was expected to reach 55
megawatts by 2011, then 95 megawatts by 2016, and late 500
megawatts by 2022. In 2013, installed photovoltaic capacity nearly
doubled and reached 704 megawatts by the end of the year.
Economic renewable energy development typically requires
that governments exploit their natural renewable resources with
subsidies reducing in line with technology costs and market
maturity. Thailand has adopted such an approach and while its
biomass has the greatest renewable generation potential, the
rapid growth of solar energy could conceivably see solar challenge
wind power as the Kingdom’s second most important renewable
resource by 2020.
In order to stay competitive in a rapidly globalizing economy,
Thailand has emerged as one of the first countries in Asia to
encourage alternative energy investment. In an effort to
maintain the sustainability and security of energy in Thailand,
the government developed the 10-year Alternative Energy and
Development Plan (AEDP), with the target of increasing alternative
energy consumption from 7,413 ktoe (kilo tonnes of oil equivalent)
in 2012 to 25,000 ktoe in 2021.
The AEDP 2012-2021 has the twin goals of transforming the
country into a low-carbon society and of increasing the use of
renewable energy to 25% of total energy consumption by 2021.
A significant portion of this target is to seek substitutes for natural
gas power generation, with an emphasis on wind energy (wind
turbine farms), hydropower, biomass, biogas, as well as waste
and garbage.
On 16 July 2013, the National Energy Policy Committee approved
updated feed-in tariffs for both rooftop and ground-mounted solar
photovoltaic panels with contract terms of 25 years on the condition
that they had to be installed by the end of 2014. Regarding rooftop
solar power, a target of 100 megawatts was set for households
and 100 megawatts for SMEs and factories. To be specific, the
goal was to increase Thailand’s target installed Photovoltaic
(PV) capacity by 1,000 MW to a total of 3,000 MW. Since the
government no longer accepted applications under the known
adder-tariff-scheme (feed-in premium) for solar projects, these
policy packages reopened support for solar power in Thailand.
The move was a new step of the Department of Alternative Energy
Development and Efficiency’s (DEDE) to develop commercial
solar power generation and bolster the country’s energy security.
With solid governmental commitment to develop a clean energy
society, the DEDE was established under the Ministry of Energy,
to support, promote, and develop clean energy production and
consumption cost-effectively and sustainably. In addition, the
government office aspires to transform the country as an energy
knowledge base society, as witnessed with the inauguration of
the School of Renewable Energy Technology – an institute at
Naresuan University – to train students and scholars in this field.
In fact, the DEDE launched its solar cell standard testing and
research center with the intention of becoming a hub for theASEAN
region. Currently, solar cells are used to produce over 3,200
kilowatts of electricity and rapidly increasing. The Department
emphasizes on the quality, efficiency, and product life of relevant
components such as solar panels, batteries, inverter, and battery-
controlled equipment.
Solar is a clean natural energy resource that can be converted into
heat and electricity. There are two main methods for generating
electricity from solar energy. One is photovoltaic (PV) cells,
which generate power by converting solar radiation into direct
current (DC) electricity using semiconductors. The other method
is a concentration system, using lenses or mirrors to focus sun
radiation. The concentrated sunlight heats water or other fluids to
generate steam for use in steam turbines to generate electricity.
Recognizing the importance of alternative energy to the country,
the Board of Investment (BOI) has designated it as a priority sector.
With the recent announcement of the Seven-Year Investment
Promotion Strategy (2015-2021), the BOI has introduced new
criteria and project classifications that apply to the solar power
sector.
April 2015
Page 5

6. Continued from P. 5
First, the production of electricity and steam from renewable
energy, such as solar, wind, biomass or biogas, except from
garbage or reuse derived fuel, is included. Secondly, there is the
manufacture of solar cells and/or raw materials for solar cells.
Yet this activity must abide by the guideline that the Board must
approve the manufacturing process and energy yield for the
production of solar cells. Furthermore, these particular activities
fall under the category of Group A2 and as a result shall receive
the following incentives:
• 8-year corporate income tax exemption, accounting for 100%
of investment (excluding cost of land and working capital);
• Exemption of import duty on machinery;
• Exemption of import duty on raw or essential materials used
in manufacturing export products for 1 year, which can be
extended as deemed it appropriate by the Board; and
• Other non-tax incentives, such as permission to bring in foreign
workers, own land, and take or remit foreign currency abroad.
Additionally, projects in manufacturing and many service
sectors are entitled to majority or total foreign ownership.
The current legal, regulatory and business environment provides
great market opportunities for foreign solar companies and
entrepreneurs to develop and engineer a solar project, to obtain
financing based on the power purchase agreement, to enter into
a joint venture with the major players in the Thai energy market.
Compared with other Southeast Asian countries, Thailand has
the highest electricity demand, with plans for increasing imports
from neighboring countries such as Laos, Myanmar, and China.
Investments in renewable energy is one of the country’s priorities,
given its goal to reduce its energy imports. Furthermore, the
soon-to-be-announced Thailand Power Development Plan 2015
- 2036 will open the doors to foreign investments in renewable
energy, especially solar photovoltaic projects.
Of equal significance, the Government Public Relations
Department recently reported that the National Reform Council
(NRC) has given support to the “Quick Win” proposal, which
seeks to liberalize the installation process of solar rooftops to
generate electricity. Indeed, Mr. Alongkorn Ponlaboot, Chairman
of the NRC Energy Reform Committee, stated that solar power
generation is a part of the energy reform plan. It is expected
that in the first five years of implementation, from 2015 to 2020,
schools, workplaces, government offices, and households will
begin to install solar rooftops.
During that period, at least 100,000 sets of small solar rooftops
could be installed at various houses and generate 500 megawatts
of electricity. In the next 20 years, at least one million small
solar rooftops are likely to be installed, generating at least
5,000 megawatts of electricity. For Mr. Alongkorn, the energy
reform plan would help reduce imports and investments in the
construction of more power plants. The plan also would develop
Thailand as a “green country” and as a leader in ASEAN in the
use of solar energy.
Concerning energy investment policy, priority will be given to
energy-saving technologies and the promotion of renewable
sources, such as ethanol, biodiesel, biogas, biomass, solar and
wind. Under the revised 10-year alternative energy development
plan (2012-2021), the solar power generation target has been
lifted to 3,000 megawatts from 2,000 megawatts. According to
Prime Minister Prayuth Chan-ocha, since Thailand could not
rely solely on gas and oil for fuel sources, the use of renewable
energy must be promoted and domestic production must be
encouraged. The objectives are to reduce the burden from
imports and conserve limited petroleum and gas resources.
Presently, installed capacity stands at 35,000 megawatts, with
the majority of energy sources from LNG liquid natural gas (66%)
and coal (20%). Non-hydro renewable energy contributes a
minor (around 5%) but increasing share of total electric power
generation.
Several policies already are in place to support investments
in renewables, including tax incentives and benefits. The first
package announced was the aforementioned policy scheme to
support the deployment of rooftop PV in Thailand. According to
the Ministry of Energy, the scheme is meant to encourage private
and community investments, minimize peak load and contribute
to energy security in Thailand. Meanwhile, the Provisional
Electricity Authority of Thailand offers a fixed purchase price for
solar power, which is composed of the average electricity price
plus an additional premium or “Adder” by way of remuneration.
Today, the state-owned Electricity Generating Authority of
Thailand (EGAT) generates roughly half of the country’s electrical
power. The other half of the generation assets are developed and
owned by private companies and sold to the government electric
utilities like the Metropolitan Electricity Authority (MEA/Bangkok)
and the Provincial Electricity Authority (PEA/Upcountry). In fact,
according to the Ministry of Energy, at the end of December
2014, 294 solar farms have started selling 1.32 gigawatts to the
grid, while 14 with total capacity of 296 megawatts have signed
sales contracts but have not supplied power. Some 178 solar
stations have applied to sell 1.01 gigawatts.
Thailand was one of the first Asian countries that put into place
an incentive scheme for renewable power generation back in
2006. A perfect illustration is the Feed-in Tariff (“FiT” - measured
in Thai baht/kWh), which is a long-term fixed payment guarantee
for produced renewable energy. FiTs are the most widely used
national renewable energy policy instrument worldwide, and
are recognized as one of the most effective and efficient drivers
of renewable energy scale-up by creating investor security.
Under the Renewable Energy Adder Program (REAP), it affixes
supplementary payments (“Adders”) on top of the normal prices
paid by the governmental off-takers like EGAT, MEA and PEA.
This ensures guaranteed long-term purchases, easy project
financing, and attractive tariff rates to eligible grid-connected
renewable power projects.
Unlike thermal power plants, the operation of a solar power
station has negligible environmental impact. There are no waste
products, no harmful coolants used, no noise, and no impact on
flora and fauna. Indeed, solar energy is an abundant resource
throughout Thailand and can represent a potential of more than
50,000 megawatts in installed power capacity, according to
international measurements of average solar irradiation over the
last 20 years. The DEDE estimates that technical potential for
Thailand’s solar energy is as high as 42,356 megawatts.
Solar power is a renewable source of energy that is clean and
unlimited. The Thai government is taking steps to increase the
share of renewable energy in the country by tapping Thailand’s
abundant solar potential. Solar cell technology has proved to
be an environmentally friendly solution. No doubt, Thailand
holds great promise in the installation of more solar rooftops.
Apart from reducing the burden during peak demand hours,
this technology also will contribute to energy conservation and
transform the country’s energy system over the long-term.
April 2015
Page 6

7. A Haven for Savvy Investors
Thailand remains a haven
for savvy investors, with the
Board of Investment approving
10 additional projects at its 2
April 2015 meeting, with a total
investment value of 28,541.7
million baht.
Now in its fourth month of the
new investment incentives
initiated at the beginning of the year, the momentum at the
Board of Investment not only confirms that investors continue to
have a strong interest in Thailand, but also that the government
is committed to affecting change in Thailand to improve the
investment climate.
Dr.Prasarn Trairatvorakul, Governor of the Bank of Thailand,
recently speaking before the Japanese Chamber of
Commerce, stated that “The steps taken reflect the desire by
the current government to not only facilitate and encourage
private investments, but also to steer the new investments
into more productive sectors, which will raise our long-term
competitiveness.” He went on to say that the only way for any
country to escape the middle-income trap is to raise productivity
and innovation, which require among others investment in
infrastructure. It should be noted that the Bank of Thailand is
keeping monetary policy accommodative in order to support
economic recovery and public confidence.
Not even in office for a year, this is exactly the development
path that has been embraced by the government. Thailand has
already had talks with both China and Japan for cooperation in
various aspects of the national rail improvement that will connect
China and Thailand, and through Thailand connect to other parts
of ASEAN. Japanese companies and other in Thailand look
forward to the double track program as one of the measures that
will enhance the nation’s logistics capacity.
In fact, at its meeting on 27 March 2015 the cabinet approved
the Thai Transport Infrastructure Development Plan 2015-2022,
which includes 1) intercity train network development, 2) public
transportation network development to solve traffic problems
in Bangkok and its outskirts, 3) increase of highway capacity
to connect the country’s key production bases with those of
neighboring countries; 4) marine transport network development;
and 5) enhancement of air transport services capacity. Also
approved at that meeting was the Urgent Transport Action Plan
2015, which also deals with these issues.
Confidence in Thailand extends well beyond regional interests,
as recently affirmed by the courtesy call paid at the end of
March by the Ambassador of
Canada to Thailand to Prime
Minister Chan-o-cha, signaling
Canada’s readiness to expand
cooperation with Thailand.
The meeting between the two
comes following the conclusion
o f t h e C a n a d a - A S E A N
Business Forum. According
to the release issued by Government House, “The Canadian
Ambassador mentioned expertise of Canadian private sector in
various fields which might match Thailand’s demand, such as
financial and banking, satellite, aircrafts, and automotive parts.
Both parties also discussed certain cooperation which would
lead to the agreement on FTA between the two countries in due
time.”
Likewise, the meeting in early April between Thailand’s Prime
Minister Chan-o-cha and Russian Prime Minister Dmitry
Medvedev was a reaffirmation of confidence and friendship
between the two countries which have enjoyed diplomatic
relations for nearly 120 years. The meeting follows up on their
meeting at the 25th ASEAN Summit in Myanmar, during which
Thailand invited Russia to invest in Thailand’s infrastructure
projects, and a readiness to improve trade and investment.
Speaking to the media after their recent meeting, Prime Minister
Chan-o-cha stated that they had exchanged opinions on how to
boost trade between Thailand and Russia to US$10 billion next
year.
Thailand’s door remains open for foreign investors and with new
investment incentives, a government that is actively promoting
foreign investment in the kingdom, a commitment to strengthen
infrastructure and lower logistics costs, there is little wonder that
UNCTAD has ranked the country the 8th top prospective host
economy.
April 2015
Page 7

8. The EIU Worldwide Cost of
Living 2015 report
The EIU Worldwide Cost of Living 2015
report ranks Bangkok as only the 57th most
expensive city in the world, with Singapore
once again at the top of the list at #1, followed
by Paris, Oslo, Zurich and Sydney. However,
it should be noted that since the report
ranked the most expensive cities the changes
in exchange rates and the collapse in the
price of oil would likely alter the rankings to a
degree if made today.
According to the report, “The survey gathers
detailed information on the cost of more than
160 items-from food, toiletries and clothing
to domestic help, transport and utility bills…
More than 50,000 individual prices are
collected in each survey round, which take
place in March and September, and surveys
are updated each June and December. A
cost-of-living index is calculated from the
price data to express the difference in the
cost of living between any two cities.”
Investors can rest assured that choosing
Thailand as their investment destination
remains a cost effective alternative, yielding
high returns.
Turn Creativity into Digital
Economy
Dr. Yongyuth Yuthavong, Deputy Prime Minister, presided over
the seminar “Turn creativity into Digital Economy”, which was
arranged by the Thailand Creative & Design Center (TCDC) on
16 March 2015 at the headquarters of Thailand Post Co., Ltd.
Speaking at the event was Dr. Sitthichai Pokai-udom, an adviser
to Deputy Prime Minister Pridiyathorn Devakula, who said that
the government will form a National Digital Economy Committee
to take responsible on this policy. Further, that the Ministry of
Information and Communication Technology will become the
Digital for Economy and Society Ministry.
Within the first three years, said Dr. Sitthichai, the priority is to
build a national fiber-optics network, and conduct an auction for
fourth-generation cellular spectrum licenses; every household
must have fiber-optics internet.
Thailand’s aim is to have the lowest cost of internet fee in ASEAN
and become the hub of the ASEAN internet system.
The Ministry will also support e-commerce business, which is
something now promoted under the new BOI investment policy.
Dr. Sitthichai also noted that the single window idea is to
integrate people’s information within one card (an identity card),
reducing the time and access to documents when contacting
governmental agencies.
This far, the cabinet approved 10 of the digital economy draft
bills, including the NDEC bill which will give authority to the
National Digital Economy Committee to take action against
any civil servant who fails to comply with committee orders or
directives regarding digital economy policy.
Also speaking at the seminar was Dr. Narongchai Akrasanee,
Energy Minister, as an adviser of the National Council for Peace
and Order on fourth-generation cellular spectrum licenses. He
noted that the idea of a digital economy first started during the
Creative Economy Policy in the Cabinet of former Prime Minister
Abhisit Vejjajiva. The task now is for the Cabinet to integrate the
relevant aspects of the Creative Economy and Digital Economy.
He expects that 25 million Thai freelancers will utilize the digital
economy to push Thai economy.
It should also be recalled that at an earlier seminar held in Japan,
Deputy Prime Minister M.R. Pridiyathorn Devakula stated that
both government and private sector are working hard in Thailand
to develop the digital eco-system to support and accommodate
the dynamics of a digital economy.
In support of that initiative, the BOI now promotes electrical
products with the capability of connecting with the internet, or
so-called internet of things, as well as digital content; software,
cloud services, enterprise software, conferencing applications,
E-learning via broadband and multimedia, E-commerce, software
parks, data center industrial estates or industrial zones, and R&D
to name a few of the activities that support the building of a digital
economy.
April 2015
Page 8

9. Continued on P. 10
COMPANY INTERVIEW
Energy Absolute
What is solar power? Simply put, it is produced
by collecting sunlight and converting it into
electricity. This is done by using solar panels,
which are large flat panels made up of many
individual solar cells. It is used most often in
remote locations, especially in areas with a
high density of solar radiance, although it is
becomingmorepopularinurbanareasaswell.
Even though the potential of solar power as a
renewable is practically limitless, the industry
still is in its early stages of development with
many countries just beginning to explore the
opportunities. Thailand is a perfect example.
In late October 2014, Prime Minister
Prayuth Chan-ocha, chaired the National
Energy Policy Council, which endorsed a
new program to boost renewable energy
production, with a particular focus on solar
power. The tilt towards solar power is due to
the dependence on natural gas, principally liquefied natural gas
(LNG). Some 65% of the country’s electricity is generated via
natural gas, of which 14% comes from neighboring Myanmar,
and the other 4.5% from other international markets. Additionally,
demand is set to accelerate over the next decade. And that will
have to be imported, due to dwindling domestic reserves. By
2023, one-third to two-thirds of natural gas demand will have to
be met by imported LNG.
With this scenario in mind, Thailand needs to switch to an
alternative. Renewable energy sources look the most promising,
above all solar power. Thailand already has more solar power
and biomass power capacity than every other Southeast Asian
country combined. The sharp fall in the price of solar panels
and input costs also will persuade people to utilize solar power.
The price of solar panels has dropped from an average of US$5
per watt in 2010 to US$0.5 per watt, equivalent to a 90% cost
saving. Meanwhile, the Thai government provides subsidies to
companies investing in solar energy.
Presently, there are a number of solar power companies
operating in Thailand but only one stands out as a true pioneer
in the field, and that firm is Energy Absolute. In late March of
this year, the Thailand Investment Review newsletter team was
privileged to sit down with Mr. Amorn Sapthaweekul, Director and
Deputy CEO, and talk about Energy Absolute and the future of
solar power in Thailand.
Energy Absolute (EA) entered the green energy business in 2007
with an investment in the production and sale of biodiesel made
from crude palm oil. Since then, the quality of EA biodiesel has
continued to improve due to the company’s improved technology
and the knowledge and experience of its employees. This has
enabled EA to become one of the three largest manufacturers
of biodiesel in Thailand, and major oil companies in Thailand,
such as PTT, Esso, Chevron, Star Petroleum Refining and IRPC,
have accepted EA’s biodiesel product widely in terms of quality
standards.
After the success of its initial venture, EA
started to look for business opportunities that
would increase investment return, diversify
risk, and enhance the financial security of
the company in the long-term. However, the
imperative was to remain within the framework
of alternative energy and in alignment with
the government’s development plan. Mr.
Sapthaweekul observed that the solar power
sector appeared to be loaded with potential
but that for an emerging SME like EA the
market was rife with uncertainties. Still,
the EA executive team was not risk averse
and after careful study entered the arena
with a modest pilot program worth Bt800
million in order to convince lenders of the
viability of renewables in generating power.
Furthermore, EAmanagement recognized the
need to focus on the functional improvement
of its personnel as there were many large
operators in the marketplace, meaning that competition would
be fierce.
Energy Absolute launched itself into renewable power production
by starting with solar energy and then extending to wind energy,
while staying alert to other prospects offered by climatic conditions
and the natural environment in Thailand. EA was able eventually
to organize four solar energy power plant projects with a total
contracted capacity of 278 megawatts and eight wind power
plant projects with a total capacity of 386 megawatts. At present,
EA earns 70% of its income from biodiesel and 30% from power
generation.
Established in 2006, EA researches, develops, manufactures,
and distributes methyl ester biodiesel products in Thailand and
internationally. The company also generates high-speed diesel
oil and purified glycerin, first successfully produced by EA.
In addition, it is involved in the generation and distribution of
electricity through solar and wind power plants as well as in
the construction of solar power plants. Moreover, it provides
consulting services for solar power plant projects. The company
formerly was known as Suntech Palm Oil and changed its name
to Energy Absolute in 2008.
Mr. Sapthaweekul commented that EA has broadened its
portfolio significantly, diversifying into renewable energy from its
traditional business of biodiesel production to take advantage
of easy access to financing and the national grid to ramp up
capacity. The shift in focus came as the Thai government began
providing incentives in 1992 to reduce the country’s reliance
on imports, which still account for more than half of its energy
supply. Capacity from solar and wind will rise to 4,800 megawatts
by 2021 from 1,046 megawatts in 2013, according to the Ministry
of Energy’s website.
In December 2013, the company began selling electricity to
EGAT from a new 90-megawatt solar power plant in Nakorn
Sawan province. The solar farm, the first of three of that size
Mr. Amorn Supthaweekul,
Director and Deputy CEO
April 2015
Page 9

10. Continued from P. 9
that EA intends to build through 2015, is the largest in all of Asia.
Funding came from a successful debut on Thailand’s Market for
Alternative Investment (MAI) and the project came on the heels
of a successful launch of an 8-megawatt solar power plant in
Lopburi a year earlier.
As reported by Bloomberg Business in August 2014, EA plans to
lay out about Bt46 billion (US$1.4 billion) over the next three years
to boost generation capacity from renewable energy. In fact, this
past February EA completed building a 90-megawatt solar power
plant in Lampang worth Bt8.5 billion. Now EAis setting up another
solar project in Phitsanulok with a capacity of 90 megawatts
worth Bt8.5 billion. It plans to invest an additional Bt29 billion
on wind farms with total output of 386 megawatts. Two of these
green power plants will be located in the southern Thai provinces
of Nakhon Si Thammarat and Songkhla with a total combined
capacity of 126 megawatts. They are to be completed in March
2016. In the meantime, wind farms in Chaiyaphum province will
be finished in 2017. About three-fourths of the investment funds
used for these projects will come from commercial bank loans
and the remainder from the company’s cash flow.
“The company has a strong ambition to become the leading
operator of renewable energy in Thailand and the region,” Mr.
Sapthaweekul declared. “Revenue from solar and wind power
plants will outstrip the company’s traditional biodiesel business
after the completion of those new plants in the next few years.”
According to Mr. Sapthaweekul, the vision of EA is to be a leader
in the alternative energy business through the use of modern and
environmentally-friendly technology while benefitting consumers,
shareholders, business partners, and employees. With a staff of
300 team members, mainly consisting of engineers, educational
qualifications are necessary but experience is more important.
Furthermore, it is essential that the individual possesses
problem-solving skills as the solar power sector is quiet new
in Thailand and challenges often surface on a daily basis. It is
interesting to note that Mr. Sapthaweekul views his entire team
as a vast human resource pool from which the company can
tap into and engage in practical research and development.
EA is built around employees who work in an environment that
encourages creativity and innovation that can enhance the
company’s competencies.
On the topic of the company’s relationship with the Thailand
Board of Investment (BOI), Mr. Sapthaweekul pointed out that
the two organizations have a solid partnership and that since
the beginning the BOI has provided constant support and
guidance concerning government regulations on alternative
energy, particularly solar power. Also, working together with the
BOI has benefitted the company by making it more attractive
to lenders, which are pivotal for the injection of capital funds.
He declared that the BOI offers service with a personal touch
and that the lines of communication always remain open. The
BOI has been involved with EA for many years and much of
the success achieved by the company can be attributed to its
substantive cooperation with the BOI.
The company’s founders recognized the importance of
environmentally-friendly energy, and embraced the business
opportunities inherent in the Ministry of Energy’s Renewable and
Alternative Energy Development Plan, AEDP 2012-2021. This
government strategy aims to increase alternative energy usage
to 25% of Thailand’s energy consumption within ten years, and
reduce dependency on energy imports. As a direct consequence,
EA has been resolute in seeking out prospects in this field, and
any problems encountered have been seen as challenges and
not obstacles.
Thailand is one of the fastest growing solar energy markets
in Southeast Asia. Several large firms are looking to set up
solar power projects in different provinces of Thailand. In fact,
the electricity consumption in the country is rising at a rate of
4% to 5% per annum, and only renewable energy can bridge
the demand-supply gap and reduce dependence on fossil fuel
imports. As s result, the Thai government has implemented
numerous initiatives to promote solar power infrastructure. In
2013, the government announced long-term feed-in tariffs for
rooftop panels as well as large-scale solar photovoltaic projects.
It is often stated that power production capacity in Thailand
is expected to rise to 55 gigawatts by 2030 with its share of
renewables to increase to 25% by 2021. Biomass is expected
dominate the renewable energy market whereas solar
photovoltaic and wind energy are expected to be the second and
third largest contributors, respectively. Yet in whatever direction
the Thai renewables market goes, one should not be surprised
to see Energy Absolute out in front of the crowd as the company
has proven to adapt to a changing business environment.
April 2015
Page 10

11. On 2 April 2015 BOI Deputy Secretary General Chokedee
Kaewsang spoke with investors at a seminar entitled “BOI
Investment Opportunities in Auto Sector in Thailand” at the
Sheraton Centre Toronto, Canada.
On 12 March 2015 BOI organized a Dinner Talk on “Thailand as
a Trading Hub” in honor of a high-level Singaporean business
delegation led by the Singapore Institute of International Affairs
visiting Thailand at the Grand Hyatt Erawan Bangkok, where
a speech was delivered by Deputy Prime Minister Pridiyathorn
Devakula.
On 3 April 2015 BOI Deputy Secretary General Duangjai
Asawachintachit, together with guest speakers from the Thai
Chamber of Commerce and Board of Trade of Thailand sploke
at a seminar on “New Investment Promotion Strategies and
Measures to Promote SMEs” , where more than 200 SMEs
joined at the Miracle Grand Convention Hotel.
During 23-27 March 2015 BOI Deputy Secretary General
Duangjai Asawachintachit led an investment mission to Taiwan.
Investment seminars on “New Investment Promotion Strategies:
Towards Sustainable Growth” were held in Taipei on 25 March
and Tainan on 26 March 2015.
BOI’S MISSIONS AND EVENTS
BOI Senior Executive Investment Advisor Ajarin Pattanapanchai
joined as a panelist to discuss the topic “Why Thailand” at a
forum held by the Canadian-ASEAN Business Forum in Bangkok
from 18-19 March 2015 at the Anantara Siam Hotel Bangkok.
On 23 March 2015 BOI Senior Executive Investment Advisor
Ajarin Pattanapanchai gave a presentation at a BOI seminar on
“New Investment Promotion Strategies: Towards Sustainable
Growth” in Guangzhou, China, during an investment promotion
mission to China from 22-25March 2015.
April 2015
Page 11

12. THAILAND ECONOMY-AT-A-GLANCE
Source: Stock Exchange of Thailand
Source: Bank of Thailand
SET Monthly Closing Values
International Reserves / Short-term Debt (%)
Exchange Rate Trends
Industrial Capacity Utilization (%)
Head Office, Office of the Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900, Thailand
Tel: +66 (0) 2553 8111 Fax: +66 (0) 2553 8316 Website: www.boi.go.th E-mail: head@boi.go.th
BEIJING
Thailand Board of Investment,
Beijing Office
Royal Thai Embassy
No.40 Guang Hua Road,
Beijing, 100600, P.R.China
Tel: (86-10) 6532-4510
Fax: (86-10) 6532-1620
E-mail: beijing@boi.go.th
FRANKFURT
Thailand Board of Investment,
Frankfurt Office
Bethmannstr. 58, 5.OG
60311 Frankfurt am Main
Federal Republic of Germany
Tel: (49 69) 92 91 230
Fax: (49 69) 92 91 2320
E-mail: fra@boi.go.th
GUANGZHOU
Thailand Board of Investment,
Guangzhou Office
Royal Thai Consulate-General
Guangzhou
No.36 Youhe Road, Haizhu
District, Guangzhou, P.R.C
510310
Tel: +8620 8385 8988
Ext. 220-225
+8620 8387 7770 (Direct Line)
Fax: +8620 8387 2700
E-mail: guangzhou@boi.go.th
LOS ANGELES
Thailand Board of Investment,
Los Angeles Office
Royal Thai Consulate-General
611 North Larchmont Boulevard,
3rd Floor, Los Angeles, CA
90004 USA
Tel: (1-323) 960 1199
Fax: (1-323) 960 1190
E-mail: boila@boi.go.th
MUMBAI
Thailand Board of Investment,
Mumbai Office
Royal Thai Consulate-General,
1st Floor, Dalalmal House,
Jamnalal Bajaj Marg,
Nariman Point, Mumbai
400 021 Republic of India
Tel: (9122) 2204 1589-90
Fax: (9122) 2282 1071
E-mail: mumbai@boi.go.th
NEW YORK
Thailand Board of Investment,
New York Office
7 World Trade Center,
34th Floor, Suite F, 250
Greenwich Street,
New York, NY 10007
Tel: (1-212) 422 9009
Fax: (1-212) 422 9119
E-mail: nyc@boi.go.th
OSAKA
Thailand Board of Investment,
Osaka Office
Royal Thai Consulate-General,
Osaka, Bangkok Bank Bldg.
7th Floor , 1-9-16 Kyutaro-
Machi, Chuo-Ku, Osaka
541-0056 Japan
Tel: (81-6) 6271-1395
Fax: (81-6) 6271-1394
E-mail: osaka@boi.go.th
PARIS
Thailand Board of Investment,
Paris Office
Ambassade Royale de
Thailande, 8, Rue Greuze
75116 Paris, France
Tel: (33 1) 5690 2600
(33 1) 5690 2601
Fax: (33 1) 5690 2602
E-mail: par@boi.go.th
SEOUL
Thailand Board of Investment,
Seoul Office
#1804, 18th Floor, Koryo
Daeyeongak Center,
97 Toegye-ro, Jung-gu, Seoul,
100-706, Korea
Tel: (822) 319-9998
Fax: (822) 319-9997
E-mail: seoul@boi.go.th
SHANGHAI
Thailand Board of Investment,
Shanghai Office
Royal Thai Consulate-General
15 F., Crystal Century Tower,
567 Weihai Road, Shanghai,
200041, P.R.China
Tel: (86-21) 6288-9728,
(86-21) 6288-9729
Fax: (86-21) 6288-9730
E-mail: shanghai@boi.go.th
STOCKHOLM
Thailand Board of Investment,
Stockholm Office
Stureplan 4C 4th Floor
114 35 Stockholm, Sweden
Tel: +46 (0)8 463 1158
+46 (0)8 463 1172
+46 (0)8 463 1174 to 75
Fax: +46 (0)8 463 1160
E-mail: stockholm@boi.go.th
SYDNEY
Thailand Board of Investment,
Sydney Office
234 George Street, Sydney,
Suite 101, Level 1,
New South Wales 2000,
Australia
Tel: +61-2-9252-4884
Fax: +61-2-9252-4882
E-mail: sydney@boi.go.th
TAIPEI
Thailand Board of Investment,
Taipei Office
Taipei World Trade Center
3rd Floor, Room 3E39-40,
No.5, Xin-Yi Road, Sec.5
Taipei 110, Taiwan, R.O.C.
Tel: (886) 2-23456663
Fax: (886) 2-23459223
E-mail: taipei@boi.go.th
TOKYO
Thailand Board of Investment,
Tokyo Office
Royal Thai Embassy
8th Fl., Fukuda Building West,
2-11-3 Akasaka, Minato-ku,
Tokyo 107-0052 Japan
Tel: (81 3) 3582 1806
Fax: (81 3) 3589 5176
E-mail: tyo@boi.go.th
Facts about Thailand
Population (2014) 65 million
ASEAN Population 625 million
Literacy Rate 96%
Minimum Wage 300 Baht/day
GDP (2014) US$ 373.6 billion
GDP per Capita (2014) US$5,445
GDP Growth (2014) 0.7%
GDP Growth (2015, projected) 3.5-4.5%
Export Growth (2014) -0.3%
Export Growth (2015, projected) 3.5%
Trade Balance (2014) US$ 24.6 billion
Current Account Balance (2014) US$ 14.2 billion
International Reserves (2014) US$ 157.1 billion
Capacity Utilization (2014) 60.48%
Manufacturing Production Index (2014) 168.2
Core Inflation (2015, projected) 1.59
Headline Inflation (2015, projected) 1.89
Consumer Price Index (Mar 2015) 106.33
(2011=100)
Corporate Income Tax 10-20%
Withholding Tax 0-15%
Value Added Tax 7%
Mar Average Exchange Rates
US$1 = 32.63 baht
€1 = 35.32 baht
£1 = 48.86 baht
100 ¥ = 27.11 baht
CNY1 = 5.23 baht
Top 10 Exports 2015 (Jan-Feb)
Product Share
Value
(US$ bn)
1 Motor cars, parts and accessories 11.94 4.12
2 Automatic data processing machines
and parts thereof
8.55 2.95
3 Precious stones and jewellery 5.41 1.86
4 Polymers of ethylene, propylene, etc in
primary forms
3.93 1.35
5 Refine fuels 3.50 1.21
6 Electronic integrated circuits 3.39 1.17
7 Chemical products 3.27 1.13
8 Rubber products 3.20 1.10
9 Machinery and parts thereof 3.01 1.04
10 Iron and steel and their products 2.65 0.91
Total 34.48
Source: Ministry of Commerce
Source: Bank of Thailand
Source: Bank of Thailand BOI
April 2015
Page 12