GEN Asia formed to key startup hub
Thailand is moving forward with plans to become a startup hub in Asia, following an agreement with the Global Entrepreneurship Network (GEN) to form a cooperative centre office for GEN Asia here this year.
GEN is a year-round platform of programmes and initiatives aimed at creating one global entrepreneurial ecosystem, the world’s largest community of startups with members in 165 countries.
The government through the Digital Economy Promotion Agency (Depa) agreed to form a cooperative centre office for GEN Asia in Thailand, meant to bridge startups in Asia and the world in knowledge collaboration and access to venture capital funds.
A memorandum of understanding was signed between GEN and Depa yesterday at the “Digital Thailand Big Bang 2017” held by the Digital Economy and Society Ministry (DE) and National Broadcasting and Telecommunications Commission.
DE Minster Pichet Durongkaveroj said the agreement pushes the country towards becoming a startup hub in Asia, in line with the Thailand 4.0 scheme that aims to develop digital infrastructure and build networks of innovators across borders.
Thailand has a geographic advantage over other countries in terms of transportation and communication facilities, said Mr Pichet.
The cooperative centre office will initially be located at the DE Ministry on Chaeng Watthana Road, he said.
GEN Asia is a cooperation of ten countries focusing on startup ecosystem development in Asia, he said, adding that GEN Asia was formed following GEN Africa, which was initiated early this year.
“Startups are the economic warriors in the new economy that will help propel the nation moving toward the next level of competitiveness”, said the minister, noting that Thailand targets to generate 25% of GDP through the digital technology industry by 2027.
There are around 5,000 startups in the country. Many tech startups are competent enough to grow their businesses, however, they still need support through collaboration with global players.
Mr Pichet said the government has a clear strategic plan in supporting startups, not only funding resources but also creating all related ecosystem.
The government is accelerating to provide proper measures facilitating startups ecosystem in country. The DE, the Revenue Department and Board of Investment (BoI) are working on tax incentives for startups.
DE and related agencies are improving and developing a digitally literate workforce to serve the development of a digitally-driven economy and society in the long term. The government is preparing Thailand’s first digital innovation park in Chon Buri province as a development centre for startups.
The 10-billion baht digital innovation park project is being constructed by CAT Telecom in collaboration with the Industrial Estate Authority of Thailand.
The government plans to offer series of tax incentives for Thai tech startups and global tech companies to promote development of digital economy.
DE through Depa will inject financial support to new startups who need funds to develop innovative products and services.
Mr Pichet said as of now there is a 27-billion-baht capital fund by state agencies and private sector for local startups.
However, the government is also seeking additional funding sources including “angle fund’ that would be partly supported by Stock Exchange of Thailand.
Mr Pichet said there is a 27-billion-baht venture capital fund for local startups, generated by state agencies and private sectors.
However, the government is also seeking additional venture capital from others, including angel funds that would be partly supported by the Stock Exchange of Thailand.
Digital Thailand Big Bang 2017, taking place at Impact Muang Thong Thani, features the latest technological innovations and brings together dozens of top leaders in the digital technologies industry who will hold talks to exchange perspectives and experiences.