The Thailand Board of Investment (BOI) has approved a set of four new measures aimed at strengthening the competitiveness of small and medium-sized enterprises (SMEs) in response to ongoing global economic challenges. The initiatives were endorsed on May 21 as part of a broader government effort to stabilize the local economy and support business resilience.
The new policies, initiated under the guidance of Prime Minister Paetongtarn Shinawatra, are intended to encourage technological adoption, tighten sectoral regulations, and clarify labor requirements for foreign employees. According to government spokesperson Jirayu Huangsap, these adjustments reflect the state’s strategy to reinforce Thailand’s position in the global market while protecting domestic interests.
One of the key changes involves expanded tax incentives for SMEs upgrading their operations through automation or environmentally friendly technologies. Companies making qualifying improvements will be eligible for corporate income tax exemptions for up to five years, with the cap raised to 100% of the investment value—an increase from the previous three-year period with a 50% limit.
The second measure halts promotional privileges for sectors deemed to face oversupply or heightened trade risk. This includes industries such as solar panel manufacturing, lead-acid battery production, vehicle accessories, and scrap processing without recycling components. Incentives will also be suspended for specific downstream steel manufacturing activities.
A third provision strengthens requirements for projects seeking export benefits. Firms will now need to demonstrate substantial value addition, particularly through material transformation. To qualify, the final product must show a customs classification change of at least four digits, with focus areas including automotive parts, electronics, and metal goods.
The final measure revises criteria for foreign labor employment. Companies employing over 100 workers must ensure that at least 70% of their workforce consists of Thai nationals. In addition, minimum monthly salaries have been set for foreign professionals applying for work permits—150,000 baht for executives and 50,000 baht for specialists.
These policies are part of the government’s broader economic strategy to foster sustainable growth, maintain labor equity, and improve Thailand’s appeal as an investment destination. Senior officials and agency representatives were present during the BOI’s announcement on May 21.