Expectations for Thailand's border trade figures this year may be dashed due to a delay in the government's infrastructure development along checkpoints and slow business with Malaysia, warns the private sector.
Niyom Wairatpanij, a vice-chairman of the Thai Chamber of Commerce (TCC), said border trade this year might reach 1.44 trillion baht, below the target of 1.5 trillion set by the Commerce Ministry. TCC figures show total border trade in 2014 amounted to 1.3 trillion baht, up by 7% from 2013.
He expects Thai border trade with Malaysia this year will grow by only 1% due to lower Malaysian demand based on the sluggish global economy. Last year, border trade with Malaysia amounted to 800 billion baht, up 2% from 2013.
In this year's first quarter, border trade growth slowed to 6% year-on-year compared with 7% growth in the first quarter of 2014, Mr Niyom said.
"The private sector has proposed several times to the government that authorities open 200-300 temporary checkpoints along the border nationwide to stimulate border trade," Mr Niyom said.
"But the response seems relatively slow, as the government is concerned about tax evasion and national security."
Only four or five checkpoints are set to open this year in Sa Kaeo, Ubon Ratchathani, Trat and Prachuap Khiri Khan provinces.
He repeated his call that the government accelerate tackling traffic congestion at significant checkpoints at Sadao, Mae Sot, Aranyaprathet, Nong Khai and Mukdahan.
Arkhom Termpitayapaisith, secretary-general of the National Economic and Social Development Board, said the government was in the process of building roads and infrastructure at various checkpoints.
The six Greater Mekong Subregion countries also agreed to invest US$51.3 billion in infrastructure projects from 2014-18, with Thailand accounting for $30 billion.
Commerce Minister Chatchai Sarikulya said the government had accelerated establishing its first special economic zone in Mae Sot and was expanding the twin-city model to Mukdahan and Savannakhet from Mae Sot and Myanmar's Myawaddy.
Thailand and Laos in February agreed to set up a joint border trade committee to drive and supervise the economic links of key border towns, mainly through Nong Khai-Vientiane, Chiang Khong-Bokeo, Nakhon Phanom-Khammouane and Mukdahan-Savannakhe, to increase border trade to US$8.16 billion over three years.