The project is now waiting for approval from the Securities and Exchange Commission.

Chanitr Charnchainarong, president of the MAI, said the agency expected to set up the fund by the end of this year. It was also negotiating with local and foreign venture capital funds to invest in the project. The proportion of the investment is expected to be 50:50.

He said the fund would have a total investment of around Bt2 billion for an eight-year period.

The agency would support funding and its partners would take care of business management and consult to take advantage of the skills and knowledge of local businesses.

The fund would focus on investing in local businesses in four areas including food, culture and tourism, medicines and herbs, as well as IT and digital content. It will invest by way of foreign direct investment (FDI). The fund will invest around Bt200 million in each business area.

"This project will develop an ecosystem of new entrepreneurs and start-up businesses in the country. We must learn from Silicon Valley how to create ecosystems to enable local businesses to run smoothly and create competitiveness for the international market," Chanitr said.

He said the fund would be a source of finance to help local businesses support their future development.

It would also offer technology transfer and knowledge to entrepreneurs.

"I believe the MAI project will increase the productivity of local businesses and transfer knowledge from overseas to local businesses, entrepreneurs and software developers," Chanitr said.

"I hope the fund will help local businesses expand their base and enable them to list in the stock market as the next step," he said.

Jirapan Boonnoon

The Nation