The Singaporean government’s policies, which have elevated the city-state to the status of a major hub for entrepreneurs, are being emulated by the Thai government in an effort to grow the startup sector there.According to StartupBlink’s annual global startup ecosystem report, Singapore is the top Asian economy. Singapore is placed sixth, while Thailand is ranked 52nd. Thailand still has a lot of issues supporting businesses, such as difficult documentation, a lack of investors, and a skilled labor scarcity.
Main Points
By providing investors in specific industries with tax-free capital gains, Thailand hopes to strengthen its startup industry.
Due to characteristics including low levels of corruption, ease of conducting business, and the absence of capital gains taxes, Singapore has been successful in developing top companies.
Thailand has made progress in building its startup environment, but it still confronts obstacles like oligopolies, a lack of investors, and a convoluted bureaucracy.
Although it is still in its infancy, Thailand’s startup ecosystem has the ability to advance and thrive.
To draw in foreign businesspeople and investors, the Thai government has put in place creative visa policies and infrastructure improvements.
Thailand is giving the growth of its startup ecosystem top priority in order to ensure continued economic expansion. The Thai government is working to attract and link local and foreign entrepreneurs through creative visa programs and infrastructural improvements, albeit it is not yet as focused as some of its neighbors.
The nation, which has already created a number of unicorns, wants to encourage the entrepreneurial spirit among its people in order to attract additional funding to the startup industry. To encourage foreign investment, the government has also reduced taxes for venture capitalists and offered incentives for participating in particular sectors.
The number of startups in Thailand has significantly increased in recent years, rising from 102 in 2018 to over 1000 in 2022. The COVID-19 epidemic has increased demand for digital services, and the FinTech industry is responsible for 60% of all capital funding. Through the SMART Visa program, the government has also put regulations into place to draw foreign companies and investors to the ecosystem. The necessity for seasoned talent and some entrepreneurs’ tendency to follow trends are still issues, though.
Even though there is still a lack of a talent connection between international and local talent, the Thai public sector is creative in terms of visa programs and the use of various vehicles to allow expats to stay in Thailand for an extended period of time. Examples include the Smart Visa for foreigners who have established IT companies in Thailand as well as a special Elite visa for professional, business, and leisure travel. Additionally, the only visa that provides high-potential individuals with a range of tax and non-tax benefits is the recently launched Long-Term Residents Visa.
