Foreign Investors Back Thai Govt's Logistics Plan

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Foreign investors back logistics plan
Business Desk
The Nation

Benefits to infrastructure outweigh funding concerns; execution remains a worry

BANGKOK: -- The foreign investor community is throwing its support behind the government's infrastructure development plan, convinced that if efficiently executed, it will boost the Kingdom's attractiveness and draw more foreign investment.

Regardless of the political war of words during the House debate in the past two days, Peter John van Haren, president of PJ International Consulting and president of the Thai-Canadian Chamber of Commerce, said that foreign investors' attention is centred on the benefits of the investment.

"It doesn't concern us if the borrowing would entail any complications. Our focus is on the benefits to the country's infrastructure, as the proceeds will be invested in the transport system and the logistics. It has been in our conversation for a long time that Thailand's transport links with other countries and domestic links, like to Chiang Mai, Khon Kaen or the South, have been lagging in terms of development in the past years," he said during an interview with Krungthep Turakij TV yesterday.

Despite the opposition's criticisms about the constitutionality, repayment ability and transparency, the local business community is also backing the Bt2-trillion investment plan, designed to boost the country's logistics competitiveness through domestic and regional linkages. Topping the local investors' concerns is the execution. Due to pressure mainly from the Anti-Corruption Organisation of Thailand, the government has promised stringent procurement rules to ensure transparency.

The Bt2-trillion borrowing bill has sparked widespread attention, due to the huge amount involved and the long repayment period. At press time, voting on the bill was yet to take place, but it is expected to have sailed through thanks to the government's majority votes. In the next step, the Democrat Party is pinning its hope on the Constitution Court ruling the bill unconstitutional.

Niwat Kanjanaphoomin, president of the Thai Bond Market Association, estimated that the borrowing will drive public debt to 52 per cent in 2020, when the gross domestic product will expand from Bt12 trillion now to Bt15 trillion to Bt16 trillion then.

Kasikorn Research Centre estimated that without legal obstacles, the government could start issuing bonds for Bt30 billion in the last quarter of this year, to finance the infrastructure and water-management projects.

Dr Roong Poshyananda Mallikamas, an economist at the central bank, yesterday said that the investment would be a good thing if it bolsters long-term competitiveness. The Bank of Thailand is now studying the economic value of the investment and benefits to the country's competitiveness in the long term.

Van Haren said some of Thailand's infrastructure was very good.

"Some parts must be improved, though, like the rail network. With the narrow, obsolete track, the rail system needs a revamp, to support more goods shipment. The new system would be a boon given that the network has covered more than 50 provinces," he said in the interview.

He admitted that the investment offers great opportunities to foreign investors who are willing to share their expertise in construction know-how and technology.

Still, he noted that unlike local investors, foreign investors would leave all legal issues in the hands of local governments. If the projects they are involved with are implicated in corruption, "we're sure that courts in their respective countries would issue a clear and quick ruling, demanding the companies to take responsibility. This forces them to make sure that the projects are transparent and would not cause them problems".


-- The Nation 2013-03-30

[Markaew]

"It doesn't concern us if the borrowing would entail any complications."

Their mouth must be watering over the possible kickbacks on such a large project. The only "complications" normally incurred here are the ones that are created so money can make them disappear. Change in Thailand is only a thinly veiled scam.

[chainarong]

Due to pressure from the anti-corruption org of Thailand, an arm of the business community the government has to come to the party with guarantees that corruption is held in check , says something for the confidence held by companies doing business in Thailand, when you have to set up your own corruption org also the comment, topping the business council concerns was its execution, the government has just been put on notice in a nice way , lift your bloody game because lots of your other projects have wilted and failed due to lack of commitment , in other words , all talk no action. Sorry it's business as usual chaps

[Thai at Heart]

Dr Roong Poshyananda Mallikamas, an economist at the central bank, yesterday said that the investment would be a good thing if it bolsters long-term competitiveness. The Bank of Thailand is now studying the economic value of the investment and benefits to the country's competitiveness in the long term.

Uhhh? They are doing it now???? Isn't that just a tad late?

[Locationthailand]

This is just media hype. Spin from the PR department,

[Skywalker69]

The foreign investor community is throwing its support behind the government's infrastructure development plan

Of course they do they are the investors.

[Ricardo]

Note the key let-out phrase "if efficiently executed".

[belg]

"boost the country's logistics competitiveness through domestic and regional linkages"

do get any credibility, maybe they could finally start the public bus services the tuk tuk and taxi maffia is holding back because being afraid to lose their golden egg opportunity to scam all tourists in phuket

who in his right mind would go lend that amount of money and make plans to pay it back over 50 years !!!

[ZhouZhou]

Regardless of the political war of words during the House debate in the past two days, Peter John van Haren, president of PJ International Consulting and president of the Thai-Canadian Chamber of Commerce, said that foreign investors' attention is centred on the benefits of the investment.

looks like some of the foreign experts are indeed real experts.

this guy is Candadian? anyone know from what city?

[Thaddeus]

Regardless of the political war of words during the House debate in the past two days, Peter John van Haren, president of PJ International Consulting and president of the Thai-Canadian Chamber of Commerce, said that foreign investors' attention is centred on the benefits of the investment.

looks like some of the foreign experts are indeed real experts.

this guy is Candadian? anyone know from what city?

Calgary ?

[how241]

This is just media hype. Spin from the PR department,

+1

[tomross46]

There are many foreign investors wanting to get involved. The ones from Montenegro and Dubai top the list.

[Skywalker69]

Regardless of the political war of words during the House debate in the past two days, Peter John van Haren, president of PJ International Consulting and president of the Thai-Canadian Chamber of Commerce, said that foreign investors' attention is centred on the benefits of the investment.

looks like some of the foreign experts are indeed real experts.

this guy is Candadian? anyone know from what city?

Calgary ?

Calgaryll. I think your on to something T.

[rubl]

No real surprise here. Foreign investors have a tendency to manage to recover their investment somehow. Either from the creditor or the guarantor. Plus possible tax benefits here and there.

[Thereisnoif]

This is just media hype. Spin from the PR department,

If you only knew how many foreign companies, involved in the transportation business, are setting up rep. offices and local branches as we speak, that would have spared you such an uneducated comment .

[kinmaew]

"It doesn't concern us if the borrowing would entail any complications."

Their mouth must be watering over the possible kickbacks on such a large project. The only "complications" normally incurred here are the ones that are created so money can make them disappear. Change in Thailand is only a thinly veiled scam.

Agree and with these type of comments no Thai will ever borrow any money from me and I will never invest one cent in that country. Thailand simply cannot be trusted utterly corrupt and you are guaranteed to lose your life savings if you invest in any of their "Projects"

[mca]

http://notthenation.com/2013/04/stock-market-correction-delights-poorest-stupidest-expats/

[muttley]

mca, on 01 Apr 2013 - 16:34, said:

http://notthenation.com/2013/04/stock-market-correction-delights-poorest-stupidest-expats/

Quality Post, thank you. It seems like the gene pool's getting shallower by the day.

Edited April 1, 2013 by muttley

[dundee48]

mca, on 01 Apr 2013 - 16:34, said:

http://notthenation.com/2013/04/stock-market-correction-delights-poorest-stupidest-expats/

Quality Post, thank you. It seems like the gene pool's getting shallower by the day.

You do realise it was`Not The Nation` don`t you?

[expat888]

mca, on 01 Apr 2013 - 16:34, said:

http://notthenation.com/2013/04/stock-market-correction-delights-poorest-stupidest-expats/

Quality Post, thank you. It seems like the gene pool's getting shallower by the day.

I'm curious. Does that gene pool include you?

[expat888]

mca, on 01 Apr 2013 - 16:34, said:

http://notthenation.com/2013/04/stock-market-correction-delights-poorest-stupidest-expats/

Quality Post, thank you. It seems like the gene pool's getting shallower by the day.

Where is my "not like this" button when you need it.

[smithjames]

It doesn't concern us if the borrowing would entail any complications. Our focus is on the benefits
to the country's infrastructure, as the proceeds will be invested in the
transport system and the logistics”

Let’s wait and watch what
government does!!