Govt’s economic policies for its second year in power explained
Land bridge, entertainment complexes and Eastern Economic Corridor projects seen as vital to driving economy
Economic performance during the government’s first year in office is widely regarded as poor, with no tangible results and its stated target of achieving GDP growth of 5% far from being realised.
According to Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, efforts are being made to drive economic policies towards 3% GDP growth this year but economic agencies forecast GDP growth of just 2.4% to 2.8%.
With the second year of the government's economic policy implementation kicking off in September, preparations are being made to push forward three major policies.
Integrated Entertainment Complex Policy: The Cabinet approved the principle of this policy in April and tasked the Finance Ministry with drafting legislation in line with the recommendations addressing illegal gambling and economic benefits.
The ministry is holding public consultations on the draft Act on Integrated Entertainment Complex Business Operations through its website until August 18.
Deputy Finance Minister Julapan Amornwiwat stated that the feedback from the public will be used to revise the draft before it is submitted to the Cabinet for consideration, and later to the Office of the Council of State for legal review before being presented to Parliament.
It remains uncertain whether the law will be passed in 2024.
The draft law defines an “Integrated Entertainment Complex” as a combination of multiple entertainment business types listed in the annex to the Act, along with casinos. The term “casino” is defined as a venue designated specifically for gambling. Business operators of such complexes must be registered companies in Thailand with minimum paid-up capital of 10 billion baht. The companies must apply for an Integrated Entertainment Complex Business License, which will be valid for 30 years from the date of issue.
License holders must pay the license fee and an annual fee as stipulated. Business performance will be evaluated every five years, with the possibility of license renewal for a maximum of 10 years each time.
Land Bridge: This policy aims to promote large-scale investments, with the Prime Minister presenting this project to investors at various forums. The latest development in this project, according to Panya Chupanich, director of the Office of Transport and Traffic Policy and Planning (OTP), is that the government is accelerating infrastructure development across the country, especially in the South. The project has attracted interest from both domestic and international investors, including those from China, Dubai, the US, Japan, and Australia. Investors agree with the development plans and project details studied, and they see the potential for the project to succeed if more industrial zones are developed.
The OTP has allocated the 2025 budget to hire consultants to study project details, aiming to select private partners through bidding by the end of 2025. This will be done alongside the drafting of the Southern Economic Corridor (SEC) Act, which is expected to be completed and come into effect in early 2025.
Eastern Economic Corridor (EEC) policy implementation: Although the EEC project was not initiated by the current government, the administration has acknowledged that driving large-scale investments quickly and tangibly cannot be done without advancing the EEC policy. Srettha has visited the EEC project areas to review progress and expedite delayed infrastructure projects, such as the high-speed rail linking three airports (Don Mueang-Suvarnabhumi-U-Tapao), Laem Chabang Port Phase 3, and Map Ta Phut Port Phase 3.
Regarding the development of U-Tapao Airport and the Eastern Aviation City, Deputy Prime Minister and Commerce Minister, Phumtham Wechayachai, as chairman of the EEC Development Committee, recently visited the area to follow up on the project's progress. He reassured investors that the EEC project would proceed as planned. The government is fully committed to promoting more investment in the EEC, where projects under the EEC Track, worth over 270 billion baht, are awaiting investment.
