Private sector ready to back govt's Bt2-tn
Representatives of the private sector have thrown their support behind the government's Bt2-trillion infrastructure investment programme, saying it will help save logistics costs and increase the competitiveness of the country.
Speaking at a seminar yesterday, Prasert Bunsumpun, chairman of PTT Global Chemical, said Thailand was still lagging behind Singapore and Malaysia in terms of basic infrastructure. It was a long time since the country had invested in basic infrastructure projects, he said, and this had negatively affected its competitiveness.
The seminar, which focused on the role that private business and the energy sector would play in the country’s infrastructure development, was organised by PTT Natural Gas Distribution (PTT NGD) and Amata Natural Gas Distribution Ltd.
The government’s transport-infrastructure development project, which will consist mainly of a high-speed railway network and the upgrading of the road system, is expected to stimulate growth of the economy.
"The Bt2-trillion infrastructure investment project will also help reduce the country’s logistics costs and reduce energy costs because of the use of better track systems for transporting goods," Prasert said.
He added that the four routes for the high-speed-rail network would consume about 4,800 megawatts of electricity, but reduce oil consumption by about 3.3 billion litres per annum.
Prasert said the development of transport infrastructure would also help the economies of cities in rural areas, while connecting Thailand with neighbouring countries – thus bringing the Kingdom’s infrastructure readiness into line with standards set for the Asean Economic Community, which commences in 2015. Federation of Thai Industries chairman Payungsak Chartsuthipol said that currently, logistics costs represented about 15 per cent of the country’s gross domestic product, higher than the average 8 per cent incurred in other countries. This he said affected Thailand’s competitiveness and highlighted the need to develop its infrastructure.
Thailand’s cross-border trade with its neighbours also accounted for 10 per cent of the country’s GDP, and basic infrastructure development would stimulate growth of this segment and encourage the expansion of industries beyond large cities into new areas, Payungsak said.
Meanwhile, Prasert said that as expected, energy prices in the fourth quarter during the winter season would rise. "We expect that the price of crude oil will be about US$100 per barrel, and between $120 and $130 per barrel for finished oil. This will result in a slight increase of fuel prices in the Thai market, which is acceptable.
"We also anticipate that the baht will remain steady and will therefore have no significant impact on PTT Group’s business performance," he added.
