Somkid spots Thailand on advanced economy fast track
Thailand is in the fast lane toward becoming an advanced economy because of a number of megaprojects, digital development and the Eastern Economic Corridor (EEC), says Deputy Prime Minister Somkid Jatusripitak.
Speaking at a Board of Investment (BoI) seminar entitled “Thailand’s new phase: Turning Opportunities into Realities,” Mr Somkid said the government remains committed to transforming Thailand’s economy into an engine for Southeast Asian growth through three strategies: hefty investment in megaprojects, EEC development and digital technology promotion.
“With these important strategies, I am confident in 3-4 years, Thailand will be significantly transformed,” he said.
“This government has implemented socioeconomic reforms over the past two years that have resulted in significant economic expansion. Thailand has seen impressive economic growth over the period, recorded at 3.9% in 2017, up from 3.3% in 2016 and 2.8% in 2015. Exports also grew to US$236 billion (7.4 trillion baht) in 2017 from $214 billion in both 2016 and 2015. The government expects continued growth this year.”
The investment trend appears positive this year, with applications submitted for BoI approval projected to top 700 billion baht, compared with 198 billion in 2015.
A total of 640 investment applications were forwarded to the BoI for approval last year, up 7% from a year before.
Of the total, 300 billion baht was intended for investment in the EEC, lured by the government’s 10 targeted S-curve industries.
Foreign direct investment also rose to 283 billion baht in 2017, up from only 96.1 billion in 2015.
Mr Somkid yesterday called for coinvestment in government-initiated infrastructure projects.
Earlier this month, the State Enterprise Policy Office said nearly half of the 966 billion baht worth of projects under the fasttrack public-private partnership scheme are expected to win approval from the PPP committee this year.
Those projects include the Orange Line’s eastern and western sections, worth 195 billion baht; the Purple Line between Kanchanaphisek Outer Ring Road and Tao Poon, valued at 131 billion; and the Nakhon Pathom to Cha-am, Phetchaburi motorway project, worth 80 billion.
The PPP committee last year approved a five-year strategic plan for joint investment projects worth 1.62 trillion baht. That move is intended to accelerate infrastructure investment amid budget constraints and sharpen the country’s competitive edge. Under the five-year strategic plan through 2021, 94% of the 1.62-trillion-baht budget will involve transport infrastructure. Overall logistic costs are projected to be cut by 2-3 percentage points from 13-14% of GDP once the projects are completed.
The transport projects under the fiveyear PPP strategic plan will be divided into two groups: projects for which the government wants the private sector to play a role, such as high-speed trains; rail systems in Bangkok and ports for shipping goods; and projects in which the private sector to invest, such as airports and motorways.
With these important strategies, I am confident in 3-4 years, Thailand will be significantly transformed.
SOMKID JATUSRIPITAK Deputy Prime Minister