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With a project life of seven years and a size of Bt800 million, the fund will focus on direct investment in businesses that bank on creativity to establish themselves in the international marketplace. The fund inception coincides with the government's policy to promote creative economy as Thailand's next economic engine.

Pichit Akrathit, president of the mutual fund company, said the fund will support the government's policy to foster Thailand's creative economy under Thai Khemkhaeng scheme, to promote creative industries more materially and encourages all sectors to play their part in the development of a creative economy.

MFC today signed the memorandum of understanding with nine other institutions, namely the Export-Import Bank of Thailand (EXIM Thailand), the Islamic Bank of Thailand, the Small and Medium Enterprise Development Bank of Thailand (SME Bank), Government Savings Bank, Small Business Credit Guarantee Corporation (SBCG), Thailand Creative & Design Center (TCDC), National Innovation Agency (NIA), Software Industry Promotion Agency (SIPA), and Stock Exchange of Thailand (SET).

Thailand Creativity Fund is focused on direct investment in companies that utilise intellectual assets in their business operation, production, or services. The fund wants to play a supporting role for development and growth of investee companies, in particular the small and medium size enterprises who seek to value creation to in order to achieve increaseing marketability and future growth potential, as well as giving them a competitive edge in the global market. The fund's investment scheme, to be directed toward currently operating businesses with promising track record, will be divided into two stages: the first four years will be the period of investment and the following three years will be the time for cashing in on those investments. At the end of the project's seven-year life, extension of the pooled investment is allowed for two years with consensus of the partners.

Qualified investee companies of Thailand Creativity Fund are businesses that create intellectual properties out of their ideas, skills, expertise, or talents, and these properties should contribute to additional wealth and job creation. The fund is currently in process of feasibility study to select the right investee companies in target areas of software development, graphic animation, design, fashion, printing and printed media, broadcasting, and food, etc.

The criteria used to select the target companies include unique products or services, proven track record over a considerable period of operation along with promising growth potential, high-caliber management team with extensive industry knowledge and business operation experience, and a welcoming attitude toward changes for better business management standard and system.

Thailand Creativity Fund is tipped to benefit businesses in need of funding for growth and development. Support from the fund will also pave way for future listing of these companies on the Market for Alternative Investments (MAI).

"Thailand Creativity Fund is, besides an alternative investment vehicle for institutional investors, regarded as a contributor to the government's policy to enliven creative economy as a new economic powertrain in enhancing our nation's competitiveness in the global market. At MFC, although our priority is providing our unitholders with attractive returns on investment, we also take considers the importance of our role in supporting sustainable growth and development of the Thai economy," Pichit added.

Creative industries currently account for 10-12 per cent of Thai economy, or 14-17 per cent of national income. According to UNCTAD, in 2005, the industries had a combined 1.3 per cent share of the global creative industry market, which puts Thailand in the 17th place on the world's creative economy. The Thai creative industries recorded an average growth of 5 per cent per annum between 2000 and 2005.

Entrepreneurs interested to receive financial support from Thailand Creativity Fund can obtain detailed information from MFC's Private Equity & Financial Advisory Department, 199 Column Tower, Ground Floor and 21-23 Floors, Ratchadapisek Road, Klongtoey, Bangkok 10110, Tel. 0-2649-2435, Fax. 0-2649-2431. Information is also available online on www.mfcfund.com.