Thailand's economy has a chance to grow well above its average of 2% over the last five years once this government's planned infrastructure development, investment restructuring and digital economy are in place, says Deputy Prime Minister MR Pridiyathorn Devakula.
He predicts ongoing economic reforms will help the Thai economy to grow by 5% over two years.
"We believe the 'three pillars' — massive infrastructure development, a new investment strategy to promote foreign direct investment (FDI) and digital economy initiatives — will drive the country's economic growth over the next two years," MR Pridiyathorn said.
Pridiyathorn: Oil bidding necessary
Prime Minister Prayut Chan-o-cha's cabinet on March 27 approved an eight-year infrastructure development plan (2015-22) worth 1.91 trillion baht.
The new proposals cover a nationwide metre-gauge, double-track rail network, motorway capacity, Bangkok's mass-transit system and high-speed rail links between the capital and the East and the North as well as better connections between Bangkok and major tourist destinations upcountry.
Funding will be sponsored mainly by the government's fiscal budget, borrowing and a public-private partnership.
The investment budget earmarked for rail network development does not include investment in four 1.435-metre standard-gauge rail projects, which the cabinet also approved in March.
The standard-gauge routes run from Nong Khai to Kaeng Khoi in Saraburi; Chachoengsao to Si Racha and Map Ta Phut; Kaeng Khoi to Ban Phachi (Ayutthaya) and Bangkok; and Tak to Mukdahan via Phitsanulok, Phetchabun and Khon Kaen.
Gen Prayut's government has laid out a strategy to promote FDI during the seven years through 2021. The new tack will focus on technology to support the government's digital economy drive, as the country must strengthen its competitiveness and overcome its reliance on low-cost labour.
New Board of Investment privileges will focus on the type of project, favouring those that support high technology, research and design. MR Pridiyathorn said the policy would help to return Thai exports to high growth levels.
However, he noted high economic growth meant higher energy demand, meaning the government must proceed with the 21st round of bidding on concessions for oil and gas exploration.
"The new bidding round is essential," MR Pridiyathorn said. "The Petroleum Act must be amended to allow investors to choose between concessions and production-sharing, based on benefit to the country."