Thailand's private and public investments are likely to total 1.27 trillion baht this year thanks to government megaprojects and a recovery of confidence by the private sector, says Kasikornbank (KBank).
Chongrak Rattanapian, an executive vice-president of the country's fourth-largest bank by assets, said investment in state infrastructure projects was estimated to reach 270 billion baht, while private ventures would total 250 billion baht.
Chongrak: Positive factors for economy
"The government will be able to push infrastructure projects to be materialised this year after last year's delay in disbursement," he said.
The private sector will invest mostly in telecommunications infrastructure that will expand on the back of demand for connectivity.
The food processing, media and automotive sectors will particularly benefit from investment.
"The low-interest-rate environment in Thailand and a slump in oil prices are considered positive factors for the economy," Mr Chongrak said.
Thailand's outbound investment is expected to be 750 billion baht.
"Outbound investment last year was about 900 billion baht due to the number of mergers and acquisitions," Mr Chongrak said.
KBank expects its full-year net profit will grow by more than 15%, supported by a recovery in public and private investment coupled with higher fund mobilisation in the capital market by large companies.
Mr Chongrak said 90% of Thailand's large companies had not begun raising funds through the capital market.
"Although the Stock Exchange of Thailand (SET) index has been affected by declining oil prices, lower fuel prices help to stimulate the economy since consumers shoulder fewer costs and have more income. This is a plus for GDP," Mr Chongrak said.
KBank will either provide loans or act as a consultant for these major conglomerates, he said.
The bank's fee revenue is expected to grow by 13% this year.
Regarding KBank's loans to finance Wind Energy Holding Co's projects, the bank is still offering loans for the troubled company's existing projects, but loans for new ones will have to be assessed further based on the structure of its shareholders and projects, Mr Chongrak said.
Nopporn Suppipat, who was a co-chief executive of Wind Energy, has been on the run after evading a court arrest warrant on allegations he hired people to kidnap a creditor to force him to slash a debt from 120 million baht to 20 million.
The credit line for Wind Energy projects is 1-2 billion baht, Mr Chongrak said.
KBank is one of four financial institutions providing loans to the Huoy Bong 2 and 3 projects. About 70% of both projects has been funded through a syndicated loan from KBank, Siam Commercial Bank, Tisco Bank and the Industrial and Commercial Bank of China (Thai).
Emma Collins, previously a co-chief executive, was appointed Wind Energy's sole boss with immediate effect in mid-December following the corruption scandal that implicated Mr Nopporn.
KBANK shares closed Monday on the SET at 227 baht, down two baht, in trade worth 720 million baht.