Investment Promotion Policies on the Medical Device Industry
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1 Investment Promotion Policies on the Medical Device Industry
2 BOI s Foreign Equity Participation Criteria No restriction on foreign shareholding in manufacturing
3 BOI Incentives for Medical Devices Tax Incentives - Exemption of import duty on machinery - Exemption of import duties on raw materials (for exports) - 3 to 8 years of corporate income tax exemption Activities Manufacture of high risk or high technology medical devices (e.g. x-ray machine, MRI machine, CT Scan machine, MRI machine and implants) or medical devices that are commercialized from pubic sector research or public-private sector research Manufacture of Other Medical Devices (except for medical devices made of fabrics or fibers) Manufacture of medical devices made of fabrics or fibers e.g. gowns, drape, caps, face masks, gauze and cotton wool CIT Exemption 8 Years 5 Years 3 Years
4 Additional Tax Incentives Merit-based Incentives 1. Competitiveness Enhancement 2. Decentralization 3. Industrial Area Development 4
5 Merit on Competitiveness Enhancement Additional CIT exemption will be granted in case of investment/expenditure in 1. R&D: in-house, outsourced in Thailand or joint R&D with overseas institutions 2. Donations to Technology and Human Resources Development Fund, and support to educational institutes, specialized training centers, R&D institutes or governmental agencies in S&T field 3. IP acquisition/licensing fees for commercializing technology developed in Thailand 4. Advanced technology training 5. Development of local suppliers with at least 51% Thai shareholding (advanced technology training or/and technical assistance) 6. Product & packaging Design: in-house or outsourced in Thailand, as approved by the Board
6 Merit on Decentralization 3 more years of corporate income tax exemption if located in the 20 poorest provinces (Kalasin, Chaiyaphum, Nakhon Phanom, Nan, Bueng Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa Ket, Sakhon Nakhon, Sa Kaew, Sukhothai, Surin, Nong Bua Lamphu, Ubon Ratchatani and Amnatcharoen) 6
7 Merit on Industrial Area Development 7 Projects located in industrial estates or promoted industrial zones are granted 1 additional year of corporate income tax exemption. There are over 60 industrial estates/parks in Thailand.
8 BOI Incentives for Medical Devices Non Tax Incentives Land ownership rights for foreign investors Work permit/visa facilitation for foreign experts and technicians 8
9 BOI Promoted Project 9
10 Investment Statistics in Medical Device From year Number of promoted projects: 131 projects Total Investment : 1,025 mil. USD - Japan: 365 mil. USD - Europe: 229 mil. USD - Others: 431 mil. USD 10
11 4 Main Products of Promoted Projects Product % of Total Projects 1. Disposable Product 46 % - Non Woven Product - Natural Rubber Product - Synthetic Rubber Product 2. Optical Lens 15 % 3. Basic Equipment Ex Wheelchairs, Hospital Beds 4. Other Products Ex Catheter, Needle, Hearing Aid 8 % 31 % 11
12 4 Main Products of Promoted Projects 1. Disposable Product (46 % of Total promoted projects) 1.1 Non Woven Product - surgical drape, surgical gown, table cover, face mask, cover shoe Example of promoted companies - Emerald Nonwovens International (Taiwan) - Molnlycke Health Care (Sweden) 12
13 1.2 Natural Rubber Product surgical glove, examination glove, condom Example of promoted companies - Safeskin, Cardinal Health (U.S.A.) - SSL Manufacturing (Netherland) - Suretex (Australia) 13 13
14 1.3 Synthetic Rubber Product Blood Tubing Line, Blood Bag, Endotracheal Tube, First Aid Dressing Example of promoted companies - Kawasumi Laboratories (Japan) - M.E. Nikkiso (Japan) - Kendall-Grammatron (U.S.) 14
15 2. Optical Lens (15 % of Total promoted projects) Example of promoted companies - Hoya Lens (Japan) - Essilor Manufacturing (France) - Vision Ease Lens (U.S.A.) - Eyebiz Laboratory (Australia) - Transitions Optical (France) 15
16 3. Basic Equipment (8% of Total promoted projects) Wheelchairs, Hospital Beds, Walking Aids Example of promoted companies - Mizuho Thailand (Japan) - Metron Medical (Australia) - Karma Mobility (Taiwan) 16 16
17 4. Other Product (31 % of Total promoted projects) Examples - Asahi Intech (Japan: Catheter, Guide Wire) - Nipro Corp (Japan: Needle, Infusion Set) - Benchmark Electronics Thailand (US: Glucose meter) - Lotus Dental, Hexa Ceram (Thailand: Artificial Teeth) - D Med Hearing Center (Thailand: Hearing Aid) 17 17
18 Thank you
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