Caretaker Commerce Minister Somkid Jatusripitak said after a BoI meeting that under the economic circumstances, new measures were necessary to boost investment.

The board is considering establishing a panel of officials from related agencies to formulate new incentives. A proposals will be ready for Cabinet consideration within a month.

"Additional incentives will be on top of tax-related ones," Somkid said. "There could be incentives in terms of labour, environment, land and infrastructure to attract investment from local and foreign sources."

For investments of more than Bt30 billion in the electronics industry, investors will be entitled to maximum tax-related benefits, plus other incentives involving the establishment of research and development funds.

One long-term proposal would be to establish a special industrial estate for advanced technology industries, to help reduce costs and increase competitiveness.

Meanwhile, the board has approved incentives for investment in the production of sodium chloride, chlorine, sodium hydroxide, hydrochloric acid and hydrogen peroxide - all raw materials used in the petrochemical industry.

To encourage tyre manufactures to expand capacity, the board has agreed to waive taxes on machinery imported for expansion on original premises located in zone 1 and zone 2. Earlier, factories in the two zones were not exempted from the import tariff.

"The measures should raise investment," said Satit Charnchaokul, secretary-general of the Board of Investment. "Right now, investors are shunning investing in some industries, such as petrochemicals and alternative fuels, because of shortages of raw materials. As the government steps in to bridge the gap, this should encourage them to throw in the investment."

He said that projects approved by the BoI this year would be worth between Bt750 million and Bt800 billion, as targeted.

Meanwhile, Finance Ministry officials said that Somkid planned to travel to Singapore and Hong Kong in September to shore up confidence among overseas investors, shaken after months of political uncertainty in Thailand.

He will attend meetings of international investment bankers in the two cities on September 15 and September 17, mainly to reassure them about the government's mega-projects for overhauling the country's transport system.

The government originally planned to invest US$7.65 billion (Bt294 billion) on infrastructure this year, in the first phase of a $44-billion scheme to improve public rapid transit, highways and other key services. But Thailand's political turmoil, which has left it without a functioning Parliament, has cast doubt on the plans.

"The political situation is unlikely to affect these projects, which are driven not only by the government but also by the private sector," said Naris Chaiyasoot, a ministry official.

Bidding for the projects was set to begin in late April, but has been postponed until a new government can take office.

No date has been set for new elections, but the beleaguered Election Commission has suggested October 22 and October 29.