Govt projects, SEZs to drive growth
Thailand's three most powerful private-sector organisations expect the economy this year will be driven mainly by the government's infrastructure development projects, while the establishment of special economic zones (SEZs) in border provinces will also
The Joint Private Standing Committee – comprising the Board of Trade of Thailand, the Federation of Thai Industries and the Thai Bankers Association – predicts economic growth coming in at 3.5-4 per cent, well above the expected expansion of just 0.6-0.8 per cent for last year.
Isara Vongkusolkit, chairman of the Board of Trade and of the joint committee’s meeting yesterday, said the economy was showing positive signs of recovery, mainly in tourism and domestic spending.
The joint committee sees the major driver of the economy being the government’s infrastructure investment projects, with the Bt68-billion investment in transport projects as the priority this year.
These public projects will lead to private-sector investment, while budget disbursement will give the economy a boost, he said.
The SEZ investment project, meanwhile, will help drive cross-border trade and investment growth, which will also facilitate economic expansion, he added.
Moreover, the Board of Investment’s approvals for Phase 2 of the eco-car programme, which entails combined initial investment capital of more than Bt130 billion, will also boost investment and economic growth this year, said the committee chairman.
The private sector also foresees brighter export growth this year, which the joint committee estimates at 3.5 per cent, compared with flat growth last year. Thai shipments should expand more strongly to the United States and Asean, and to neighbouring Cambodia, Laos, Myanmar and Vietnam in particular.
To strengthen cooperation with Japan, the Joint Private Standing Committee is scheduled to host the 23rd joint meeting between the Thai and Japanese private sectors on February 2.
At the meeting, they will exchange views on cooperation and forming closer ties with the aim of facilitating increased trade growth between the two countries, Isara said.
