Presented by Ms. Ajarin Pattanapanchai, Deputy Secretary General of Thailand Board of Investment in San Diego on June 23, 2014

1. Investment Opportunities in
Thailand for Biotech Business
Ms. Ajarin Pattanapanchai
Deputy Secretary General
Thailand Board of Investment

2. Outline
• Facts & Figures
• Why Thailand
• BOI Investment Promotion Policy
• Investment Opportunities for
Biotechnology

3. Thailand’s Fast Facts
Thai population 67 million (2013)
Thailand’s GDP
US$385 billion (2013)
US$5,647 per capita GDP
Thai GDP by sector
Agriculture: 12%
Industry: 45%
Services: 43%
Thai labor force 39.13 million (2013)
Thai exports US$225.4 billion (2013)
Thai imports
US$219.0 billion (2013)
Source: NESDB as of Feb 17, 2014 and Pocket World in Figures 2014 Edition

4. THAILAND is the world’s
• 17th largest manufacturer output
• 28rd largest exporter (US$225.4
billion in 2013)
• 2nd largest economy in ASEAN
(GDP US$385 billion in 2013)

5. WHY THAILAND

6. Highly Ranked
UNCTAD Ranks Thailand 8th as a
top prospective host economy 2013-
2015
World Bank Ranks Thailand among
the easiest places to do Business in
Asia and 18th in the World

7. “Over the past 6 years, Thailand has suffered
bouts of political unrest on top of the global
financial crisis and severe flooding. Nevertheless,
the economy maintains solid economic
fundamentals that support its resilience, with high
international reserves, relatively low inflation, a
moderate amount of government and external
debt, and a strong manufacturing base.”
Asian Development Bank Outlook 2014

8. 275
249
201
166 164
105
83
71
47
36 34
-
50
100
150
200
250
300
Prime Office Occupancy Costs
A$/sq ft/annum
Source: CBRE Prime Office Occupancy Costs, Q3/2013 as of December 18, 2013
Note:US$1=Bt30.73 and A$1=Bt29.69 in 2013

9. Wage Comparison
92.4
54.8
49.6
42.8
33.3
21.5 20.9
17 14.6
8.5 8 7.9 7.6
0
10
20
30
40
50
60
70
80
90
100
Tokyo
Seoul
Dubai
H
ong
K
ong
Taipei
K
uala
lum
purShanghai
BeijingBangkokM
um
bai
M
anila
Jakarta
Delhi
WageLevels(US$)
Gross
Net
4
Cities ranked according to gross value of index. New York = 100
Source: UBS/Prices & Earnings update September 2012

10. Low Corporate Income Tax 2013
Source: KPMG ASEAN Tax Guide, as of 2013
17
20 20
25 25 25 26
30 30
35
0
5
10
15
20
25
30
35
40
Percent
Singapore Thailand Cambodia
Vietnam Malaysia Indonesia

11. Top Destinations for
Expat Experience 2013
by HSBC
1.Thailand
Source: Expat Explorer Survey 2013, HSBC
Thailand offers Best Expat Experience
and a Low Cost of Living
Thailand has been chosen
as the best country in the
world for
Overall Expat Experience
& Overall Quality of Life

12. 12
• Thailand has 8 intellectual property-related laws, all of
which are consistent with international standards:
• Copyright Act of 1994
• Patent Act of 1979, as amended by the Patent Act
(No.3) of 1999
• Trademark Act of 1991, as amended by the Trademark
Act (No.2) of 2000)
• Act for the Protection of Layout-Designs of Integrated
Circuits 2000
• Trade Secret Act of 2002
• Protection of Geographical Indication Act of 2003
• Plant Varieties Protection Act of 1999
• Traditional Medicine and Practice Act of 1999
IPR Framework

13. Numbers of Thailand’s Graduates in 2014 (Forecast)
(Unit: person)
Source: Labor Market Research Division, Department of Employment 2012

14. Infrastructure
• 7 international airports
 In 2009, 53.9 million passengers, 1.1 million
tons of cargoes
 Suvarnabhumi Airport – Capacity: 45
million passengers and 3 million tons if cargo
per year
• Over 70,000 km Highway Systems
• 6 Deep Sea Ports & 2 International River Ports
 Capacity over 10 million TEUs
 Laem Chabang Sea Port – Capacity: 10.8
million TEUs, with additional 8 million TEUs
expansion
 e-Customs facilities
• 4,346 km Rail links to Malaysia & Singapore
• 60 Industrial Estates

15. Free Trade Agreement
Note: * Thailand, Malaysia, Indonesia, Philippines, Singapore and Brunei only.
ASEAN
•+570 million pop.
•US$1.3 trillion GDP (2007)
ASEAN+3
•+2 billion pop.
(1/3 world pop.)
•US$9trillion GDP
(16% of world GDP)
ASEAN+6
•3.3 billion pop.
(>50% world pop.)
•US$12.25 trillion GDP
Thai-Peru
Thai-Chile

16. ASEAN Economic Community(AEC) 2015
AEC A Single Market &
Production base
Source: Reaping the benefits of AEC & ,www.asean.org, as of December 2009
• Free flow of goods
• Free flow of services
• Free flow of investment
• Free flow of capital
• Free flow of skilled labor
Transform ASEAN into a
stable, prosperous and
highly competitive region
with equitable economic
development, and reduced
poverty and socio-economic
disparities

17. (17)
Investment Promotion Policy

18. (18)
 No restrictions on foreign currency remittances
 No export requirement
 No foreign equity restrictions in manufacturing
sectors and promoted services sector
 No local content requirement
Liberal Investment Policy

19. (19)
Tax Incentives
 Corporate income tax
holidays up to 8 yrs
•Additional 50% reductions
of corporate income tax for
5 yrs may apply in zone 3
 Import duty reductions or
exemptions on machinery and
raw materials
 Double deduction of public
utility costs
 Deductions for infrastructure
construction/installation costs
Non-Tax Incentives
 Land ownership
rights for foreign
investors
 Permission to bring
in foreign experts
and technicians
 Work permit/visa
facilitation
One-Stop-Shop
Visas & Work Permits
are issued in 3 hours
Basic BOI privileges and Measures

20. 20
Overseas offices
Country desks
1-Stop for visas & work permits:
work permits in 3 hours
Interaction with other govt. agencies
on behalf of investors
Industrial Subcontracting Services
Global Sourcing program
(BUILD Unit)
Intensive information
ASEAN Supporting Industry Database
BOI SUPPORT
SERVICES

21. Thailand :Top of the Food Processing Country
• The country’s rich agriculture and the high technology
combined with governmental support in food R&D have
developed
• Thailand is one of 5 net food exporter countries,
reputation as the “Kitchen of the World.”
• Thailand is among the world’s leading suppliers of
commodities such as rice, sugar and cassava, as well as
a leading provider of fresh and canned fish, shrimp,
pineapple, and a variety of fruits and vegetables.

22.  World class hospital services, high-quality medical
treatment with Thai hospitality
 Thai doctors study abroad, speak international languages
and are among the best in the region
 Supporting facility: Lab test services
 Health tourism increased in last few years, more than 3
millions foreign patients get services in Thailand each
year, becoming the largest in Asia
Thailand: Regional Medical Hub
 Good opportunities for medical
device and biotechnology

23. EXCELLENT SUPPORTING UNITS
• Board of Investment (BOI)
• Thailand’s Science Park (TSP) was established as a one-
stop service center to assist companies engaged in
scientific and technological research.
• National Science and Technology Development Agency
(NSTDA)
• National Science Technology & Innovation Policy Office
(STI)
• The National Center for Genetic Engineering and
Biotechnology (BIOTEC)
• Thailand Center of Excellence for Life Sciences
(TCELS)
• National Innovation Agency (NIA)
• Health Systems Research Institute

24. Science Park & Bio Park
• Thailand’s Science Park Serves as an
incubation Center for Science-Related
Investment
• Bio Park : 1st biotech hub in Thailand for agro-
based and life science research and services
• Support Includes:
– Joint investment (i.e. joint ventures)
– Assistance in finding and acquiring technology
– Analytical and technical services
– Intellectual property services
– Quality management services
– Maximum BOI Incentives

25. Thailand Science Park
Phase II
State-of-the-art R&D and
incubator facilities
120,000 sq.m. of space
one 13-story tower
three 10-story buildings
fully completed in 2012

26. Target BOI Promotion in Life Science Business
• Medical supplies or medical devices
• Medical food
• Scientific equipment
• Laboratories Services/Test
• Research and development
• Training Center
• Biotechnology
• Biopharmaceutical agent
• Diagnostic kits for health, agriculture, food
• Bio molecule and bioactive compounds
• Biological substances analysis or synthesis services
• Biological substances analysis and/or synthesis services

27. Priority Activity Incentives
• Exemption on machinery import duties
• 8-year corporate income tax holiday
• Additional incentive if locate in Science Park
• 50% corporate income tax reduction for another 5 years
Special Incentive for Life Science Business

28. 29
Company Product/Services
I- med Laboratory Thalassemia / Lymphocyte test kit
Siam Bio Science Biopharmaceuticals
• International Drug
Development
• Aclires Bangkok
Clinical Trial
MBS Asia Antibody testing
• Bio-Innova and Synchron
• International Bio Service
Bioequivalence
Bionet Asia R&D for Vaccine
Austrianova Cell-in-a-box
Greater Pharma
Manufacturing
Vaccine and Allergy Testing Agent
Example of Promoted Projects in Biotech

29. (30)
Supports for US Investors
BOI Office New York
61 Broadway, Suite 2810,
New York NY 10008 USA
Tel: (212) 422 9009
Fax: (212) 422 9119
E-mail: boiny@aol.com
nyc@boi.go.th
BOI Office Los Angeles
611 North Larchmont Blv.
3rd Floor
Los Angeles, CA 90004 USA
Tel: (323) 960 1199
Fax: (323) 960 1190
Email: boila@sbcglobal.net
U.S. Desk @ BOI Headquarters
555 Vibhavadi-Rangsit Rd.
Chatuchak, Bangkok 10900 Thailand
Tel: (66 2) 537-8111 Fax: (66 2) 537-8098
E-mail: head@boi.go.th

30. Thank you