Govt to double infra spending

This will compensate for low investment in infrastructure over nearly two decades and should also boost the economy in light of weak export demand and the sluggish economic recovery at home, said the source, who asked for anonymity.
“The NESDB is reviewing the investment plan, which includes both rail and road projects. This should be completed within the next few months,” he said, referring to the National Economic and Social Development Board.
As things currently stand, the government plans to invest Bt1.8 trillion in 20 infrastructure projects through 2022.
HSBC estimates that the Bt1.8-trillion investment should require government spending of around 1 per cent of gross domestic product annually, which should ensure economic growth of 3 per cent in 2016.
Additional investment would spur the growth rate and likely reduce the pressure for more stimulus measures, whose combined value already exceeds Bt100 billion. Unlike investment that can create jobs and boost income in a more sustainable way, stimulus measures can have negative side effects like an increase in household debt and off-balance expenses.
Thailand’s economic growth has lagged behind most of its Asian peers in recent years, prompting fears that it is becoming the new “sick man of Asia”. In a new Asian Development Bank report, among the 10 Asean nations, Thailand’s growth rate at 3 per cent for 2016 is ranked third from the bottom.
The outlook is bleak without economic reforms. In the past decade, Thailand was not among the developing Asian economies that recorded an improvement in their Global Competitiveness Index score. As well, there is no shortage of things conspiring to make matters worse – an ageing population, intense competition for foreign direct investment and changing global trade dynamics.
“We more than welcome this move. We hope this comes true,” said an economist.
Well, anything can happen on April Fools' Day.