Thailand looks to cement position as advanced medical hub in Asia
Bangkok (VNA) - As Thailand begins to
gradually ease coronavirus-related restrictions, the government is looking to
cement the country's position as an advanced medical hub in Asia.
Thailand's response to the coronavirus pandemic has
been aided by a robust healthcare system, which was ranked sixth out of 195
countries in the 2019 Global Health Security Index, calculated by researchers
at the Nuclear Threat Initiative and Johns Hopkins Centre for Health Security.
This meant Thailand was the highest ranked emerging economy
and the top Asian country in the index, which was devised to measure a
country's preparedness for a pandemic.
Prior to the outbreak of Covid-19, Thailand was
already working to establish itself as the medical hub of Asia with the 2016-25
strategic plan entitled “Thailand: A Hub of Wellness and Medical Services.”
Thailand is already popular as an international
healthcare tourism destination, and the push to further develop the medical
ecosystem has been partly driven by an ageing population, which will result in
increasing domestic demand for quality healthcare services.
As the global pandemic has added further strains to
frontline health services and back-end supply chains, the Board of Investment
(BoI) announced additional measures in April to accelerate investments in the
medical industry, which could have positive implications for the sector's
broader strategic goals.
Complementing the existing tax holiday of between 3-8
years for qualified medical device, equipment and supply businesses, the new
measures include a 50 percent reduction in corporate income tax for a further
three years.
This additional incentive is available to firms that
apply before June 30 and begin production before Dec 31.
Furthermore, manufacturers that adjust existing
production lines to manufacture medical devices or parts will be exempted from
import duties on machinery in 2020, provided they apply before September.
Additional tax benefits are being offered to companies
producing non-woven fabric used to manufacture medical masks or devices.
These measures are aimed at a fast response to this
specific situation, but were designed to also pave the way for longer-term
development, BoI secretary-general Duangjai Asawachintachit said.
Paul Ashburn, co-managing partner of the business
consultancy BDO Thailand, said Thailand already had a head start, so it is
well-placed to capitalise on increased regional demand over the next 12
months.
As such, affluent patients from neighbouring countries
are likely to still seek medical treatment in Thailand's superior facilities
once border restrictions are eased, even if it may take longer for medical
tourists from other core markets in the Middle East, US, Europe and the Indian
subcontinent to return en masse.
In addition, as many of Thailand's neighbours will not
be able to immediately count on domestic production to stockpile personal
protective equipment and necessary medical supplies in the wake of the
pandemic, Thailand will be an obvious source market due to its production
capacity and close proximity./.