Defence rolled into S-curve efforts of EEC

Defence rolled into S-curve efforts of EEC

The Eastern Economic Corridor (EEC) committee will add defence to the 10 S-curve industries it had previously selected as targets for development, in a bid to enhance the local defence industry's technology and R&D capabilities.

The committee will submit the proposal to Prime Minister Prayut Chan-o-cha, who chairs the EEC committee, for approval on Feb 1, said Kanit Sangsubhan, secretary-general of the EEC Office.

Mr Kanit said the government wants to produce more of the country's security gear at home, while importing new weapons and technology from overseas.

"The defence industry has been added to the S-curve to further develop via the latest technology and improve its R&D," he said.

The S-curve comprises 10 targeted industries: next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

Mr Kanit said the prime minister ordered the EEC committee to study the feasibility of adding the defence industry into the S-curve policy last November, as the government wants to upgrade all branches of the military agencies: army, air force and navy.

The government itself has a strong relationship with many prominent arms producers, including China and the US, and it is confident that those countries can support and transfer know-how to Thailand.

Industry Minister Uttama Savanayana said the EEC committee has approved its infrastructure development plan, totalling 168 projects worth 989 billion baht.

"We believe all infrastructure projects will be able to attract massive investment once the EEC scheme has been implemented," Mr Uttama said. "The government has great expectations about this policy to drive the country's GDP."

Some 583 billion baht representing 59% of total investment value is going to public-private partnerships and 296 billion (39%) is planned for the annual government budget.

An additional 98 billion baht has been set aside for state enterprises, with 1% of total spending going to the Thai navy.

Mr Uttama said the government forecasts that the infrastructure development project will generate 2.1-3 trillion baht and improve the country's logistics efficiency, reducing costs by 200 billion in the long run.

He said the EEC committee has approved new industrial estates to attract investment in the three EEC provinces -- Rayong, Chon Buri and Chachoengsao -- with 21 industrial estates spanning 86,775 rai.

Of this land, 28,666 rai has been developed to serve investor demand in those provinces, projected to attract 1.31 trillion baht.

The government has also provided a 3,000-rai plot in Ban Kai district, Rayong to serve Chinese investors, targeted to attract 56 billion baht.

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