Haris & Associates Phuket Thailand Legal Blog

PHUKET: A 10-billion-baht digital real estate project was revealed this week, as the private sector prepares to team up with government agencies in order to draw big name technology companies – such as Microsoft, Google, Alibaba, Samsung and Facebook – to Phuket.

“We want to capitalize on the island’s potential for becoming a digital-business hub for Asean by teaming up with the Ministry of Information and Communication Technology’s ‘smart city’ program,” said Surin Bamrungphol, founder and president of the Phuket Anti-Corruption Network.

The idea of a smart city is to utilize information and communications technology to enhance quality, performance and interactivity of urban services. Additionally, it is supposed to reduce costs and resource consumption, and improve contact between citizens and the government, explained Pracha Asawteera, manager of the local Software Industry Promotion Agency (SIPA), last week.

Phuket Governor Chamroen Tipayapongtada was quick to get on board with Dr Surin’s proposed 10bn-baht ‘Work with A View’ technology hub to be established in Pa Khlok.

“I have confidence that Dr Surin has the knowledge, resources and vision to make this project a reality. This is the answer we have been searching for in the development of a ‘super cluster’ as Phuket gears up to become a ‘smart city’,” said Governor Chamroen. “We have the world-class ‘Phuket brand’ to sell to these companies. I believe they will not hesitate to set up offices on the island once the necessary infrastructure and facilities are in place.”

Earlier this year, Cabinet approved the setting up of six ‘Super Clusters’ in the country to increase Thailand’s production, industrial and export competitiveness.

The six industrial cluster types were named as automobile and parts; electronics; appliances and telecommunications; petrochemicals and other environmentally friendly chemical products; digital, garment and clothing; and processed foods.

The Ministry of Industry will set up the clusters with support from the Board of Investment (BOI), which will provide tax and non-tax related incentives for targeted industries within the clusters. The incentives are expected to roll out in the first quarter of next year.

Dr Surin’s proposal, designed to work with the synergy of the incentives to be provided by the BOI, is to build a central facility with an additional five, high-end, turtle-shaped luxury office clusters on 200 rai of land.

“There will be a total of 300 individual units, as well as a common reception area in the main building, a helicopter landing pad and hangar, a clubhouse, a residential club house and shops,” explained Dr Surin. “We will also provide high-quality security, guaranteed zero blackouts and digital housing systems.”

Dr Surin vowed that companies getting on board would be given VIP express services for customs, immigration and employee work permits, as well as all other necessary licences and permits. “We are looking to make Phuket a world-class digital city by providing state-of-the art office space, with stunning 180-degree views of the beauty that surrounds us on this island.”

Dr Surin’s plan is in line with Phuket and Chiang Mai being selected in September as ‘smart cities’, which are to focus on developing technology start-ups as part of a move to turn Thailand into the digital hub of Asean.

“For the Phuket Smart City, we will focus on two main ideas. The first is ‘Smart Economy’, that will bring new types of businesses to Phuket, and wean the province’s economic dependence off tourism as we develop the digital technology sector. The second is the ‘Smart Living Community’, that will see new technology implemented to improve the quality of life for both locals and tourists on the island,” said Mr Pracha.

Though Dr Surin’s 10bn-baht plan falls in line with these goals, the location of his proposed facility is not ideal, according to the research results presented by Mr Pracha.

“From our research, foreign technology-startup companies are more likely to prefer locations in Chalong, Rawai or Thalang. However, Thai-based companies will most likely want to be in Phuket Town,” Mr Pracha explained. “What we are doing now is developing aspects of ‘smart economy’ by building an ‘innovation park’ at Saphan Hin. We will also build a research center and other facilities for the IT sector.”

Mr Pracha understands that larger information technology companies are unlikely to use the facilities SIPA is setting up, as they will probably want to set up their own offices.

“What we have to do now is create enough incentives and highlight what makes Phuket uniquely advantageous to these companies, so that we can compete with neighboring technology hubs, such as Singapore and Malaysia.”

“Increasing internet speed is essential to drawing companies to the island,” Mr Pracha said. “We aim to cooperate with CAT Telecom to increase high-speed internet levels on the island from 15 megabytes to 30MB, and see those jump to 100MB within the next three years.”

In accordance with the ‘smart city’ plan, an additional 1,000 CCTV cameras will be added to the current government bundle in order to better control traffic violations. Additionally, there will be a push to bring free WiFi to the island as part of an island-wide improvement in information-technology services, explained Mr Pracha.

“These projects have my full support,” said Gov Chamroen on December 9. “I am confident that the central government will continue to do what is necessary to support the ‘smart city’ plan. I also trust that we will receive continued support from people, such as Dr Surin and other members of the private sector who are willing to spearhead these advancements for Phuket.”

Additional reporting by Sukawin Tanthavanich

This article first appeared in the December 12-18 issue of the hard-copy Phuket Gazette newspaper.
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