US$44b projects can link up with Belt and Road initiatives

BANGKOK: Thailand said a US$44 billion (RM188.76 billion) plan to add infrastructure and upgrade industry on its eastern seaboard can link up with China’s Belt and Road Initiative, as part of a push to encourage economic growth.

The Eastern Economic Corridor (EEC) project could be beneficial for China and the rest of Southeast Asia, apart from bolstering Thailand’s outlook, said Industry Minister Uttama Savanayana.

“It’s very natural, logical, and mutually beneficial for the EEC to link up with One Belt, One Road, and other regional initiatives like the RCEP or even TPP if that goes ahead,” said Uttama, referring to the Association of Southeast Asian Nations initiative known as the Regional Comprehensive Economic Partnership, and the struggling Trans-Pacific Partnership trade pact.

Thailand’s economy has been subdued since 2014 and the government is seeking to speed up infrastructure projects to boost the outlook.

The eastern seaboard plan targets 1.5 trillion baht (RM189.33 billion) of investment from this year to 2021 for airport expansion, new railways and cities, port development and spurring modern industry. Uttama expects about 80 per cent of funding from the private sector and the rest from government.

“We are pretty much on track,” he said. “So far this year, it has been a year of preparation for the EEC. We have been putting in place the overall plans. Next year we are expecting to see actual investments taking place.”

The Belt and Road Initiative is Chinese President Xi Jinping’s signature plan to open trade routes and build infrastructure from Asia to Europe to Africa. Last month, Xi outlined plans to direct as much as 840 billion yuan (RM527.39 billion) to construct roads, railways, ports and pipelines in more than 60 countries. Bloomberg