State enterprises get helping hand
Cabinet approves several draft bills
In a full-throttle push to pass key economic legislation, the cabinet yesterday approved several draft bills, including one governing state enterprises.
Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office (Sepo), said the State-owned Enterprises Improving Governance Act in particular will play a vital role in driving state-backed firms to improve their services.
The draft calls for a five-year strategic development plan for each state enterprise to pursue and conform to the country’s national economic and social development plan.
The bill also requires a state enterprises policy committee chaired by the prime minister to be set up and to outline the guidelines for state enterprise operations.
Under the bill, a national holding company will be established to oversee 12 corporatised state enterprises. Assets of the 12 corporatised state enterprises would be transferred to the national holding firm within 180 days of the bill coming into force.
Mr Ekniti said the bill also aims to improve governance and enable public participation, as well as impose guidelines for choosing members of the board of directors at each state enterprise based on qualifications.
The bill calls for an evaluation process to ensure that all state enterprises operate as required.
He said the bill is expected to take effect by the end of this year or early next year after approval by the National Legislative Assembly.
“The bill aims to lay down a foundation for state enterprise reforms and improve their transparency,” said Mr Ekniti. “It does not intend to privatise state enterprises.”
Nathaporn Chatusripitak, an adviser to Commerce Minister Apiradi Tantraporn, said the cabinet also approved four draft bills to strengthen Thai competitiveness.
Those bills include one that strengthens the competitiveness of target industries or the so-called BoI-Plus, under which investment in innovation and high technology is allowed to enjoy extra Board of Investment measures with a corporate income tax exemption for 15 years.
The bill also requires the establishment of a 10-billion-baht competitiveness fund to financially support investors in innovation.
Other bills included a draft amendment to the BoI’s Investment Promotion Act of 1977 to grant a corporate income tax exemption of up to 13 years, an increase from eight years, and a 50% reduction for five years thereafter. Another was a draft bill on special economic zone development to enhance infrastructure development and one-stop services in 10 provinces.
The 10 provinces are Tak, Sa Kaeo, Trat, Mukdahan, Songkhla, Nong Khai, Chiang Rai, Kanchanaburi, Narathiwat and Nakhon Phanom.
A special economic policy committee is to be established, while governors in the 10 provinces will be given full power to handle factory licences, town planning and machinery registration.