Thailand’s Board of Investment (BOI) announced on Thursday that it will provide up to 5 billion baht (approximately US $153 million) in direct funding to enhance industrial competitiveness and skills development, marking a departure from the agency’s historic reliance on tax incentives.

The initiative covers two core tracks: a training subsidy programme reaching at least 100,000 individuals—30,000 university students and 70,000 workers—in sectors such as biotechnology, advanced agriculture, electronics, food processing and medical devices; and a business upgrade scheme designed to help Thai firms develop capabilities and upgrade domestic supply chains to meet international standards.

The training component will fund curriculum development, evaluation systems and management oversight aligned with high-tech investor needs, the BOI said.

The supply-chain upgrade track is intended to bolster domestic linkages and raise investor confidence in Thailand as a regional hub for advanced manufacturing and innovation.

BOI chief Narit Therdsteerasukdi emphasised that “strengthening Thai entrepreneurs’ competitiveness can potentially result in stronger domestic supply-chain linkages and lead to a higher volume of investment.”

This strategic pivot comes amid robust investment application momentum: in the first nine months of 2025 Thailand recorded about 1.37 trillion baht (around US $42.2 billion) in investment-promotion applications, an increase of 94 per cent over the same period a year earlier.

The shift toward direct funding suggests the government is moving from mere incentive-driven attraction to actively building the domestic industrial ecosystem required to capitalise on the inflow of foreign direct investment.

The dual-track fund is open to both educational institutions and industry partners and reflects Thailand’s ambition to climb global value chains.

Eligible businesses will be able to apply for grants covering up to 50 per cent of approved costs for training programmes and up to 70 per cent for supply-chain-upgrade projects in target sectors.

Firms participating will undergo performance reviews and must commit to employing Thai talent, recording reductions in imported inputs or increasing exports within specified time frames.

By adopting this model, Thailand aims to anchor core capabilities domestically rather than simply serve as an assembly base.

Officials believe the approach will not only anchor investment but also generate strategically valuable high-skill jobs.

The programme is expected to begin rolling out in the first quarter of 2026, with guidelines and application details to be published on the BOI website shortly.