Thailand places growth hopes on big projects, but outlays tiny so far

[webfact]

Thailand places growth hopes on big projects, but outlays tiny so far

By Orathai Sriring and Pairat Temphairojana | BANGKOK

 

BANGKOK: -- Thailand's military government aims to jolt its underperforming economy into action with $40 billion of big-ticket investment projects - but so far nearly all the plans remain just that, with less than 1 percent of the amount spent.

 

One example is a jointly-built Thai-Chinese rail line. It has gone nowhere after 13 bilateral meetings due to disagreements over cost, financing and land rights. Thailand now says it intends to start the project by itself.

 

The junta has approved a majority of 20 proposed big-ticket projects it aims to build by 2022, which the transport minister estimated will cost 1.41 trillion baht ($40.63 billion). But it had only disbursed 11.3 billion baht, 0.8 percent of the total, by Aug. 19.

 

Full story: http://www.reuters.com/article/us-thailand-economy-infrastructure-idUSKCN11D2SZ

 

-- © Copyright Reuters 2016-09-08

[PatOngo]

That's a lot of swill in the trough! Snouts will be well fed.

[taichiplanet]

Quote from article "Thailand's infrastructure ranking in the World Economic Forum's Global Competitiveness Index fell to 44 in 2015-2016 from 38 in 2006-2007. Indonesia climbed to 62 from 89 during the same period."

 

This will be the major problem for Thailand, basically the only advantage they have over their neighbours is the infrastructure (mainly with the help of the US in 60s, 70s?). With Vietnam, Indonesia and Philippines coming on strong in the short to medium term, and Laos and Cambodia in the long term, then Thailand will have problems to compete.

[williamgeorgeallen]

that money is certainly not going to come from foreign investment. better crank up the printing presses. japan tried big projects to stimulate the economy but it didnt work. maybe it will go better for the thais.

[waldroj]

"...One example is a jointly-built Thai-Chinese rail line. It has gone nowhere after 13 bilateral meetings..."

 

They should have at least made a loop, so they could say they're going somewhere, even if it's only going round in circles. 

 

Seriously though, before these clowns embark on maga-projects that could bankrupt the country for decades, they should first complete the fundamental task of reconciliation - which also seems to be going nowhere! 

 

 

[elgordo38]

Train plans going nowhere is that the train to nowhere that they are talking about. Again this country hates to spend money. They do the talk but forget the walk. 

[ratcatcher]

"Thailand places growth hopes on big projects, but outlays tiny so far"

As the Americans say, "All hat and no cattle", "All sizzle, no steak"

[Srikcir]

14 hours ago, webfact said:

but so far nearly all the plans remain just that, with less than 1 percent of the amount spent.

Prayut had announced in May 2016 that the government had approved a budget of more than 40 billion baht, 90% of which has already been disbursed. It was expected by the end of July that 95% of the investment budget would have been disbursed.

So the stimulus that's going to offset the contraction in export revenues doesn't really exist in the material world - only in the spiritual world.

[trainman34014]

Bullshit baffles brains and this country is full of the former but shows little sign of the latter !

[SOUTHERNSTAR]

The junta is like a man that takes care of all his families needs, but without ever speaking to them about their needs. Everything is well for this man while there is no problem, but as soon as problems starts the family turns against this man and put the blame for these problems at his door step. The economy is in contraction (unless you believe BS stats), people are losing their jobs and businesses at an accelerating pace, the problems are arriving and we are still 14 months away from the promised election.