Local policymakers hope to finance a portion of infrastructure spending with foreign funds and encourage outward investment in a bid to ease the volatility of foreign capital flows.
Narongchai Akrasanee, chairman of MFC Asset Management, said the country should attract long-term investors to finance big transport projects under the government's 2-trillion-baht borrowing plan.
"Long-term foreign investors would find the 3% yields of 15-year government bonds attractive," he said. "While the government wanted to channel local liquidity to finance these projects, bonds with such a long-term maturity are unlikely to draw much interest from banks."
The infrastructure spending plan, expected to begin in earnest in 2014, could reduce excess liquidity in the system. Higher investment could also lead to an easing of baht strength.
Mr Narongchai, who is a member of the Bank of Thailand's Monetary Policy Committee, said foreign capital inflows should rise as economic prospects in Asia's developing economies outpace those of developed ones.
Local bond and stock markets received strong inflows in the first few weeks of the year. The continued trend of capital inflows would result in favourable borrowing costs for investment, though the baht would appreciate.
Heavy foreign capital inflows could lead to excessive stock price increases, said Mr Narongchai.
Jaramporn Jotikasathien, president of the Stock Exchange of Thailand, said stock prices are now on a par with other regional equities after last year's rapid rise.
Excessive increases in price-to-earnings ratio for certain small-cap stocks are being monitored by the SET and the Securities and Exchange Commission, he said.
Somchai Sujjapongse, director-general of the Fiscal Policy Office, said the Finance Ministry will announce measures to ease tax and foreign exchange regulations on outbound investment over the next few months.
The measures should include changing existing tax rules to make Thailand more attractive for foreign companies seeking to set up headquarters.
"An important issue under consideration is how much we want the tax system to be made competitive to attract foreign direct investment," said Mr Somchai. "For example, we must consider whether existing corporate income is attractive enough after already being reduced."
He identified the creation of a good old-age pension system as another critical issue, with the economy set to face sharp rises in healthcare costs and living allowances for the elderly.
ML Chayotid Kridakon, managing director of JPMorgan Securities (Thailand), said the global trend remains unclear.
"Although there has been a rise in investment in equity funds worldwide, suggesting improving sentiment, the trend is not solid," he said.