Finance Ministry plans THB300 billion infrastructure fund: Pichai

THURSDAY, JANUARY 30, 2025
Finance Ministry plans THB300 billion infrastructure fund: Pichai

Moved aimed at making flat THB20 train fare possible

 

Thailand's Finance Ministry is accelerating plans to establish a 300-billion-baht infrastructure fund to support its 20-baht flat fare policy for electric trains, Finance Minister Pichai Chunhavajira said on Thursday.

 

The ministry is now studying the details of the fund and expects it to be finalised this year, said Pichai, who is also a deputy prime minister.

 

The fund will be used to purchase assets from private train operators, enabling the government to implement the affordable fare policy without impacting operational efficiency or requiring subsidies.

 

 

"We are still studying the details of the fund, including which assets to invest in, their value, the expected returns, and the required working capital. Some assets are owned by the state, while others belong to private companies, with whom we will need to negotiate," Pichai explained. 

 

He emphasised that the fund would ensure the 20-baht fare is sustainable in the long term. While the fund's finances may be negative in the first eight years, it is expected to generate reasonable returns over a longer period, such as 30 years, especially with increasing ridership.

 

Pichai Chunhavajira Pichai Chunhavajira

 

Pichai has also instructed the 52 state enterprises under his supervision to develop long-term strategic plans to enhance their competitiveness, reduce costs for the private sector, and adapt to rapid technological advancements.
 

 

Currently, the total assets of these state enterprises are valued at over 16 trillion baht, with liabilities of 10 trillion baht and profits of 370 billion baht, representing a profit margin of just 2%. 

 

Pichai noted that this is low compared to the private sector's average profit margin of 6%. However, he said that profit is not the primary mission of state enterprises, as many of them operate for public benefit. Therefore, it is necessary to evaluate the sectors collectively to determine which business models have the potential for profitability.

 

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