Thai economy: Mega-projects 'to boost growth'

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ECONOMY
Mega-projects 'to boost growth'
Erich Parpart
The Nation


File photo : Prajin

Prajin says investment of Bt2.4 trillion will help economy grow 4-5 per cent next year

BANGKOK: -- THE JUNTA'S economic csar, Air Chief Marshal Prajin Juntong, yesterday said the government's plans to allocate Bt2.4 trillion for infrastructure investment would lead to the creation of long-term, sustainable growth of the economy.

Speaking at the "Thailand Focus 2014: Reforming for Thailand's Sustainable Growth" seminar - arranged by the Stock Exchange of Thailand, Phatra Securities and Bank of America Merril Lynch - Prajin, who is deputy chief of the National Council for Peace and Order (NCPO), said the junta would return Thailand to a properly functioning democracy in three phases.

It also aims to achieve sustainable economic growth in the future via the infrastructure investment master plan, he said.

Prajin oversees economic matters for the junta and has been tipped as a deputy PM responsible for economic affairs when Prime Minister Prayuth Chan-ocha announces his government team.

The NCPO is aiming for economic growth of 2 per cent this year. It expects gross domestic product to expand by 3-3.5 per cent in the second half of the year, and by 3.5-4 per cent next year.

The Bank of Thailand expects the economy to be able to grow by 5.5 per cent next year, which is closer to the country's real economic potential as it is growing from a lower base and many economic stimulus that were put on hold in 2014 will present themselves next year. "Confidence has been restored and the economy is recovering well, but much more needs to be done to put Thailand back on the path of stable long-term growth. In this respect, we are focusing our efforts on four fronts, namely, transportation, ICT [information and communications technology], energy and investment," he said.

Prajin explained that the investments to improve transportation would cover all four modes - road, rail, water and air - along with the establishment of strategic linkages with neighbouring countries and southern China.

The NCPO also attaches importance to the development of ICT and the building of fibre-optic networks to link up with other countries, because it believes that the sector is crucial for the country's competitiveness and the growth of other sectors, he said.

Another key aim is to reduce the Kingdom's dependence on fossil fuels to support the growing demand for energy from industries and households, he added.

Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board, told the seminar that he expected the economy to continue recovering in the second half and achieve the 2-per-cent maximum-growth mark for the full year.

He outlined the state's budget priorities for next year, splitting them into spending by government agencies and investment by state-owned enterprises. Government agencies' spending will consist of infrastructure development projects to improve irrigation and transportation such as roads, while state enterprises plan to invest primarily in the transportation and energy sectors.

"If all goes well with the infrastructure plans, people will be able to travel freely across Asia, as they do in Europe, by 2020," he added.

Prasarn Trairatvorakul, governor of the Bank of Thailand, said the central bank would play a supporting role for the government's economic-growth development plans by maintaining financial stability.

"The BOT's roles in lifting growth potential still exist … Firstly, there is the role of maintaining economic stability, as stability is a prerequisite to structural changes that lift productivity … Secondly, there is the developmental role, in the form of supply-side policies, to enhance financial-sector efficiency and create a favourable financial environment for investment that would lead to higher productivity growth," he said.

The governor also expressed confidence that the economy could grow by as much as 5.5 per cent next year, which he said was closer to the country's real economic potential, as it would be growing from a lower base and there were many economic stimuli that had been put on hold this year, but which would present themselves next year.

"Economic potential has to be viewed in two levels. The first is to find out what is our true potential, and second is how we can increase this potential," he said, adding that the economy has the potential to grow consistently by 4-5 per cent per year.

Source: http://www.nationmultimedia.com/politics/Mega-projects-to-boost-growth-30241940.html


-- The Nation 2014-08-28

[Prbkk]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

[zaphod reborn]

Every Thai administration halts the previous administration's projects and starts their own. The kickbacks are all packed into initiating projects. There's no money for the politicians and their cronies for continuing ongoing projects.

[drand11]

Its a Junta...nobosy wants to speak out against the Junta. And so much for this so called "Interim" Govt. The military is just giving themselves the opportunity to fill every govt office/ role w military "Yes" men! PATHETIC!!

[NongKhaiKid]

More sustained growth so every reason to be even happier.

[Jungle Jim]

Can someone please explain to me what common Thai is going to be able to afford the fast train.

[Boxclever]

And of course, the 1,400 or so generals will be managing the contracts. 10% skimmed from the top...nice little earner.

[15Peter20]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

Yes, but these are 'good' mega-projects, not 'bad' mega-projects like those of the elected government. You want proof? Just see how much criticism of them appears....

[dcutman]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

You would have a pretty good argument except for the fact these projects are going to be funded through the parliamentary budgetary process with transparency.

I do believe many of the so called "pundits" had a problem with.

[Ricardo]

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And of course, the 1,400 or so generals will be managing the contracts. 10% skimmed from the top...nice little earner.

Better than 30% skimmed from the top, isn't it ?

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

Except that the 4-line high-speed passenger-train network hubbed on Bangkok, is now a 2-line medium-speed freight-network leading to the port & Eastern-Seaboard, and the financing is no-longer a 50-year zero-coupon bond, so at least two major changes from Yingluck/PTP's proposals, would you not accept ?

But if they're hoping this spending will suddenly lift the economy, out of the slump it's in, well it won't because very little of the spending will take place during the first year, will it.

[Ricardo]

Can someone please explain to me what common Thai is going to be able to afford the fast train.

What fast train, that's been abandoned, and they're now planning to build two freight-lines instead ?

[Robby nz]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

[shirtless]

This is what the west has been doing, where the money going to come from and how on earth are they going to pay for it, The big question is who will benefit the most .

[pookiki]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

You would have a pretty good argument except for the fact these projects are going to be funded through the parliamentary budgetary process with transparency.

I do believe many of the so called "pundits" had a problem with.

Parliamentary budget process with transparency = NLA rubber stamping every NCPO/PM proposal with no questions asked! So much for transparency and accountablility.

[dcutman]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

Nothing but silence from our "Red pundits" with that friendly reminder.

[Bob12345]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

In theory it can be scrutinized, but unfortunately that will result in being invited for free coffee and some attitude adjustment.

[Robby nz]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

In theory it can be scrutinized, but unfortunately that will result in being invited for free coffee and some attitude adjustment.

Your real sure of that are you ?

I am going to tell you and all the other negative types that you are wrong.

The very fact that what we have is an unelected interim Govt means there will be those who are keeping a very close eye on what they are doing and how they are doing it for no other reason than they (like you) want them to fail.

You can rant on all you want about lack of freedom of speech but you have only to read the comment and editorial in media right now to see that there is considerable criticism and scrutiny of what is going on, this will not be curbed.

There is also the aspect that we see emerging of those who are now willing to speak out against corruption and intimidation and something actually being done about the complaints and people to the level of general and MP being investigated and charged.

Budgets will be open for scrutiny and, unlike with the previous Govt that thought a mandate was a invitation to do what they liked, scrutiny will not be laughed at.

[smutcakes]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

Can you direct me to details of where it has been announced how they are going to be funded? In an article in the other paper this morning it states a new railway agency will be set up to work on the project and establish how it be funded, whether through the budget (which is already proposed to be a deficit), through loans or through and infrastructure fund.

Can you shed more light on your information where it has been stated it is being done within budget?

Quite simply with a large budget deficit already, they will need a loan one way or another.

[Bob12345]

In theory it can be scrutinized, but unfortunately that will result in being invited for free coffee and some attitude adjustment.

Your real sure of that are you ?

I am going to tell you and all the other negative types that you are wrong.

The very fact that what we have is an unelected interim Govt means there will be those who are keeping a very close eye on what they are doing and how they are doing it for no other reason than they (like you) want them to fail.

You can rant on all you want about lack of freedom of speech but you have only to read the comment and editorial in media right now to see that there is considerable criticism and scrutiny of what is going on, this will not be curbed.

There is also the aspect that we see emerging of those who are now willing to speak out against corruption and intimidation and something actually being done about the complaints and people to the level of general and MP being investigated and charged.

Budgets will be open for scrutiny and, unlike with the previous Govt that thought a mandate was a invitation to do what they liked, scrutiny will not be laughed at.

If one of the first changes you make it putting yourself above laws so no matter what you do, you cannot be convicted for it, then for some reason it does not give me much convidence that what you hope will actually happen.

[Robby nz]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

Can you direct me to details of where it has been announced how they are going to be funded? In an article in the other paper this morning it states a new railway agency will be set up to work on the project and establish how it be funded, whether through the budget (which is already proposed to be a deficit), through loans or through and infrastructure fund.

Can you shed more light on your information where it has been stated it is being done within budget?

Quite simply with a large budget deficit already, they will need a loan one way or another.

As you have read that article you will probably realize that the first year will be taken up with a study so any funding will then become the responsibility of the elected Govt that follows.

The study along with upgrading and double tracking have I understand, been allowed for in the budget that will be looked at by the incoming interim Govt in the next few weeks.

So your post is really trying to make it look like all the funding for the whole rail improvements will come under the Junta which is not true.

[djjamie]

What refreshing news.

If only the PTP were able to fund this without bypassing parliamentary scrutiny which is incidentally undemocratic, surprise, surprise! The Junta are a god send by approving a loan for 75 billion baht that will be scrutinized by the NACC and completely transparent which contributes to the funding of the much needed transport sector and boosts the economy.

Key word here is "transparency" PTP were not. The Junta are.

This is why reform is needed. So the blind can see.

Edited August 28, 2014 by djjamie

[joecoolfrog]

RobbieNZ

This Junta wil of course manage the economy with efficiency , transparency and corruption will play no part in the process. We know this to be self evident because we have been told so , and history shows us that military governments have always been beyond reproach.

Like you I cannot understand all these cynical and negative remarks , after all if the people didnt trust the junta they would be protesting wouldnt they ?

[smutcakes]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

There was always agreement that these things needed to be done, the contentious issue was the out of budget borrowing proposed by the previous Govt which would have been accountable to nobody.

Now the much needed work will be done within budget which can be scrutinized.

We would hope that there will also be a big reduction in corruption, and therefore cost, now that there is something actually being done to curb it.

Can you direct me to details of where it has been announced how they are going to be funded? In an article in the other paper this morning it states a new railway agency will be set up to work on the project and establish how it be funded, whether through the budget (which is already proposed to be a deficit), through loans or through and infrastructure fund.

Can you shed more light on your information where it has been stated it is being done within budget?

Quite simply with a large budget deficit already, they will need a loan one way or another.

As you have read that article you will probably realize that the first year will be taken up with a study so any funding will then become the responsibility of the elected Govt that follows.

The study along with upgrading and double tracking have I understand, been allowed for in the budget that will be looked at by the incoming interim Govt in the next few weeks.

So your post is really trying to make it look like all the funding for the whole rail improvements will come under the Junta which is not true.

Can you answer the question? You stated it was being done within budget, can you clarify whether you simply made this up or you have some additional information on the projects funding?

It seems they have not decided how it is going to be funded.

The whole relationship between the Junta and an interim Govt selected by them is a whole other issue.

There are many other questions outstanding as well, namely;

If the PTP took a huge corruption cut, why is the budget approved exactly the same despite changes to the plans? Where is their 40% take home being allocated?

[djjamie]

RobbieNZ

This Junta wil of course manage the economy with efficiency , transparency and corruption will play no part in the process. We know this to be self evident because we have been told so , and history shows us that military governments have always been beyond reproach.

Like you I cannot understand all these cynical and negative remarks , after all if the people didnt trust the junta they would be protesting wouldnt they ?

Quite correct. I cannot understand it either. One can see the forum is not made up of Thai's, but a bitter westerner that thrived on the terrorist activities of the previous regime run by an accused terrorist, accused mass murderer and convicted criminal fugitive. Of course I can see you know better.

The Thai's have made it very clear they support the Junta, albeit the 7% minority radical red shirt group, but heay…They don't really get a voice after the 6 months of terrorist attacks they perpetrated. The Thai's mostly seem to think the military is an important institution as well and with that said so did thaksin in 1992 when he wined and dined with the junta when they were celebrating the success of that coup. Of course that thaksin meeting will be ignored as if it never happened and the polls, referendums ect that don't support the thaksin regimes will be denounced and excuses made. Thus is the life of a PTP supporter.

I must correct you on one thing though. Not all military governments are beyond reproach just as all democracies are democratic. There are democracies in Africa that are more akin to a dictatorship, heck look at the PTP in our own backyard. There are also dictatorships more akin to democracies. Remember these are only tools. It is the person that wields the tool that will prove it to be good or evil.

Well done though and thanks for understanding. It is good to see someone else that does not cherish and support terrorist groups.

Edited August 28, 2014 by djjamie

[JesseFrank]

RobbieNZ

This Junta wil of course manage the economy with efficiency , transparency and corruption will play no part in the process. We know this to be self evident because we have been told so , and history shows us that military governments have always been beyond reproach.

Like you I cannot understand all these cynical and negative remarks , after all if the people didnt trust the junta they would be protesting wouldnt they ?

, after all if the people didnt trust the junta they would be protesting wouldnt they ?

That's what I call top rated sarcasm .

[JesseFrank]

and the financing is no-longer a 50-year zero-coupon bond, so at least two major changes from Yingluck/PTP's proposals, would you not accept ?

So how they gonna finance it ? A general found a forgotten 2.4 trillion in a drawer somewhere?

[ginjag]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

Seems to be the total lack of trust in PTP, together with the total lack of transparency, paying who and what for, over how long 50 years ??

Because of the new trust with caution may I add, monies could well be documented this time, accountability has some meaning this time round.

[ginjag]

And of course, the 1,400 or so generals will be managing the contracts. 10% skimmed from the top...nice little earner.

Maybe you could put this in writing to the P.M. or keep hidden in your room slagging off the army.

[Baerboxer]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

The difference will be in the implementation.

They won't be using the services of a criminal fugitive fraudster to negotiate deals with suppliers as PTP did with K-Water.And, they will carry out appropriate consultations and assessments before deciding what to do. Rather than different from keeping it all in the family and making decisions based on the interests of family and friends.

[marcusd]

In short, the infrastructure projects proposed by the previous government and widely lambasted by so many TVF pundits. Silence now?

I think you are calling I TOO SHORT. Dual rail is not from previous govt. Yinny and your crooked mates only talked.

That's why Toyota was leaving right up until Prayuth took control. Toyota believes him..

High speed rail owned by china was previously proposed but that is not on table. Ict was not on table.

Think again