Finance minister unfazed by delay in 'Thailand Future Fund'

[webfact]

Finance minister unfazed by delay in 'Thailand Future Fund'
ERICH PARPART
THE NATION

BANGKOK: -- FINANCE MINISTER Apisak Tantivorawong has acknowledged a delay in the launch of the country's Bt100-billion infrastructure fund - also known as the "Thailand Future Fund" - which is meant to support the Kingdom's investment in mega-projects next year, but insists he is undeterred by the situation.

"From one perspective, there is no delay because the investment in [transport] infrastructure, for which the tendering for projects worth around Bt1.6 trillion [has been approved], is mainly happening next year, so we are not actually losing out on any opportunity," he said at the "Thailand Focus 2015" seminar, held by the Stock Exchange of Thailand yesterday.

Some 400 investors - about 80 of them foreign institutional investors - with combined assets under management of around US$9 trillion (Bt322 trillion) attended the seminar, according to the SET.

"The reason for the current delay [in the introduction of the fund], if you want to call it that, is that such a fund is complicated to set up. It is not easy, since we also have to think about the return and the ease of conducting the investment," the minister said.

The Cabinet approved in principle the establishment of the infrastructure fund two weeks ago, and Apisak said it was due to be tabled for final approval on its investment and financial details this week.

The infrastructure matter did not come up at the Cabinet meeting on Tuesday, but it approved the Transport Ministry's action plan for the fiscal 2016 budget, which involves the tendering for 20 transport projects worth Bt1.796 trillion from 2015 to 2017, he added. He told the seminar that that despite the hold-up, the fund would be introduced in the next week or two.

The finance minister also expressed confidence in the country's financial situation, with the international reserves at a high level of $157.56 billion as of end-October, while public debt as of the end of 2014 stood at 43 per cent of gross domestic product. Moreover, 94 per cent of the public-debt level is domestic debt, he added.

Nevertheless, Apisak said Thailand's GDP growth, expected at around 2.8-2.9 per cent this year, reflected a problem, since this kind of growth rate was weak for a developing country - a situation that had led to various economic-stimulus measures having been introduced since August.

"If we can continue to invest at this rate, then there is a chance that GDP will be able to expand to 3 per cent [this year], but we have to wait and see the numbers in December," he said.

Meanwhile, Bank of Thailand Governor Veerathai Santiprabhob said the International Monetary Fund's decision to include the Chinese yuan as one of five currencies in its reserve currency basket, also known as Special Drawing Rights (SDRs), had not had any effect on global currencies and capital markets so far, as the decision would only be effective in October next year, which allowed time for all concerned to adjust.

The BOT is ready for the yuan's inclusion in the basket, as it already has a representative office in Beijing and has been investing in renminbi (yuan) bonds, while there is also some Chinese currency in the Kingdom's international reserves, he said.

Source: http://www.nationmultimedia.com/business/Finance-minister-unfazed-by-delay-in-Thailand-Futu-30274203.html


-- The Nation 2015-12-03

[trogers]

Investments expect a reasonable return, or else they become charity.

What services involving any Thai government have provided returns instead of charity?

[trainman34014]

From where most of us are sitting Thailand's future looks bleak at the moment, so i'f i were a big time investor i would be looking elsewhere.

[fred Kubasa]

Delay in CANCELLATION !

[Rocceao]

FINANCE MINISTER Apisak Tantivorawong insists he is undeterred by the situation.

He also explained that he is undeterred because he isn't a real FINANCE MINISTER, he just plays one on the Television