The Federation of Thai Industries (FTI) plans to talk with the new finance minister about the government's cooperation with its plan to establish an innovation capital fund for small and medium-sized enterprises (SMEs).
Supant Mongkolsuthree, the FTI's chairman, said many companies are planning a budget to help this fund.
"The FTI is calling for the new government to support the fund with a corporate income tax exemption of at least three times for companies who invest in the fund," said Mr Supant.
The innovation capital fund will be set up by Thai companies with an initial budget of 1 billion baht.
"This fund will provide financial tools for local SMEs because many cannot access the government's financial sources that require many processes and documents," he said.
Innovations, R&D activities and skill training schemes will also be offered to SMEs.
"The FTI wants to focus on the capabilities of Thai SMEs, so this fund will cover all eligible companies nationwide."
Mr Supant said the fund will not cover startups because this group is supported by government agencies and private companies are accelerators for them.
SMEs contribute 80-90% of Thai GDP and the FTI is confident they can stimulate the country's economy to expand many times more than other economic engines.
This is the first time the FTI plans to meet the new finance minister after the general election on March 24.
The FTI has never before met with new ministers of a government to request support for measures, he said.
Moreover, the federation plans to meet the industry and commerce ministers to discuss new measures to support SMEs related to these fields.
"We will emphasise increasing prices for farm products and speeding up new free trade agreements (FTAs) with Europe and India," said Mr Supant.
"The FTI is confident new FTAs will help Thailand to expand to new export markets, helping exporters avoid suffering from a volatile global economy as the trade war flares."
Moreover, the FTI is calling for the new government to speed up new approvals for investors that applied for the government's electric vehicle (EV) scheme.
He said the Thai automotive industry should lay a foundation for EVs with both vehicle and battery assembly.
In the second half of 2019, the federation projects the country's economy to expand more after the new administration takes the helm.
"The sentiment will be better for investor confidence while the new government should continue ongoing and new investment projects, especially the many megaprojects in the Eastern Economic Corridor," said Mr Supant.
"Thailand has a new government that was democratically elected, and this will be a key factor in pushing forward the country's economy."
Mr Supant said the new administration will take charge within this month.
"There are many urgent issues to be carried out, so the government cannot be late in forming a new cabinet and starting work," he said.
