PM orders evaluation of impact of Map Ta Phut

Sorayud Petchtrakul, an adviser to the industry minister, said the premier had expressed concern that the ruling could confuse investors and affect the local community. The PM therefore wants to receive a clear picture of the likely effects of having to change laws and regulations.

"All relevant agencies under the Industry Ministry will discuss the ruling's impact on investment this week, as we are worried that it may delay future investment. What we can do now is explain to investors that the ruling is not meant to aggravate the investment climate," he said.

The ruling will also be raised at the next meeting of economic ministers.

Sorayud said that if the ruling affected projects that have won tax incentives from the Board of Investment, but which have yet to be started, the BOI could consider extending the investment period.

The Industrial Estate Authority of Thailand will hold a meeting with operators in Map Ta Phut tomorrow in order to evaluate their confidence and the upcoming impact of the ruling on their operations.

In its first conference during the Abhisit administration, the BOI yesterday approved an extension to the application period for granting maximum incentives for investment projects in the Laem Chabang Industrial Estate in Chon Buri province and 17 industrial estates in Rayong.

The move is aimed at promoting investment in those areas by extending the due date from this year-end to December 31, 2014.

"We already considered this investment promotion to be a separate issue from the Map Ta Phut issue. Our duty is to focus on granting tax incentives to qualified projects. However, such projects need to pass the environmental-impact assessment or meet the conditions in the pollution-control action plan," said BOI secretary-general Atchaka Sribunruang Brimble.

Laem Chabang Industrial Estate and industrial estates in Rayong together have 29,140 rai of ready-for-sale land, which can accommodate several industries such as auto parts and electronic parts.

Atchaka said no applications for petrochemical projects were currently awaiting BOI tax-incentive approval.

Industry Minister Charnchai Chairungrueng yesterday said the government would try its best to maintain investor confidence. However, he accepted that Tuesday's ruling could negatively affect future investment and reduce employment in the designated area.

"We still maintain our target of investment applications of Bt650 billion this year. However, the investment trend from now on will either surge or decline, depending on the government's policy particularly with regard to Southern Seaboard development and the steered progress of steel-smelter investment projects," he said.