Policy for Developing the Progressive Industrial Model City in Chana District, Songkhla Province: An Analysis of Fiscal Measures, Opportunities, and Challenges

Abstract

This article seeks to 1) examine the policy for establishing a progressive industrial model city in Chana District, Songkhla Province, with a focus on fiscal measures—particularly tax incentive mechanisms, budget allocations for infrastructure, and broader government financial strategies; and, and 2) assess the opportunities and challenges arising from the implementation of such an initiative. The study's findings indicate that the government has employed fiscal instruments to create economic incentives aimed at attracting private sector investment in the southern border provinces. These measures focus on reducing production costs, enhancing investment returns, and facilitating infrastructure development. While such strategies have the potential to significantly stimulate private sector participation, generous tax incentives and fiscal support may jeopardize long-term fiscal stability if the project fails to generate tangible economic returns. Although the initiative to establish a progressive industrial model city in Chana District presents a significant opportunity to foster regional prosperity, upgrade infrastructure, and promote local employment, it also faces notable challenges. These include environmental concerns, unclear policy direction and political continuity, limited transparency in public participation, and the fiscal risks associated with potentially insufficient long-term returns on investment.