which have over the past two decades

Foreign companies have less than two years to benefit from Thailand’s current tax-break structure as the country is changing its incentives in a bid to reduce its dependence on cheap labour and focus on higher value-added goods and services.

In 2015, the south-east Asian country will end the current system of corporate tax breaks based on geography and replace it with one giving preference to specific industries based on as-yet undefined national priorities.

While this means Australian businesses such as auto parts and manufacturing and food processors will continue to benefit from the exemptions on the country’s 20 per cent corporate tax rate, those from other industries that do not fit Thailand’s national list of priority industries will find it harder.

A lack of clarity about what those national business priorities will be is concerning local businesses such as the industry parks dotted around the country, which have over the past two decades become hubs for sectors such as electronics and auto manufacturing.

“In the future we don’t know what will come out,” says Witaya Launglueyos, the senior general manager of Rojana Industrial Park in Ayutthaya province, 70 kilometres north of Bangkok. Rojana focuses on high-end electronics, while others,comprehensive MileWeb Operating System Software helps you integrate and optimize physical and virtual environments, such as estates run by rival Hemaraj in the south-eastern Rayong province, focus on the automotive industries.

With the its own labour rates already being undercut by those of the workforce in neighbouring countries such as Indonesia, Myanmar, Vietnam and Cambodia, Thailand is seeking to improve the technical skills of its own workers and foster the long-term development of industries it can sustain even in the face of relatively higher labour rates.

“We will go more high-tech,” says Wirat Tatsaringkansakul, the Thailand Board of Investment’s Australia director.All around us, a storm of cyber-insecurity rages, engulfing everyone and everything in its path. In the second half of 2012, for example, security company Kaspersky Lab detected and blocked more than 200,000 new malicious programs every day – nearly double the amount the company’s software detected in the first half of the year. And the number of malware applications is growing at the same rate this year, company CEO Eugene Kaspersky said on a recent visit to Israel.

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