Thailand
Thailand – BTS executive: Transport infrastructure key
Thailand is being urged to accelerate construction of infrastructure projects while the pandemic stunts other economic drivers to attract foreign investors once the pandemic ends.
Rangsin Kritalug, chief operating officer of SET-listed skytrain operator BTS Group Holdings, said foreign investors will have more confidence in the country and are more likely to return if they see Thailand’s transport routes and key infrastructure have improved.
“It’s like we temporarily closed our shop for renovation or to build something new. We should speed up this process,” he said.
Bangkok has a mass transit system spanning 100 kilometres, compared with more than 600km in Shanghai, though the two cities started developing during the same period, said Mr Rangsin.
Government policy should be driving these infrastructure projects, he said, acting as a regulator while allowing companies with the highest potential to lead development.
Pakpoom Srichamni, president of SET-listed contractor Sino-Thai Engineering and Construction, said investment in infrastructure and transport projects can boost the economic recovery.
“The government can initiate infrastructure investment immediately,” he said yesterday at a seminar held by the Association of Siamese Architects.
“While the country’s GDP growth was negative, the construction sector rose more than 10% in the second quarter of 2020 despite the contraction in the first three months,” said Mr Pakpoom.
He said the second-quarter growth for the construction industry was mainly driven by government expenditure in infrastructure and transport projects, but the industry’s private sector froze investment after being dampened by the pandemic.
Mr Pakpoom said the industry was still uncertain whether the tourism sector, one of the country’s key economic engines, can climb back to pre-pandemic levels within the next two years.
“The government should build confidence as the private sector is concerned about its own liquidity,” he said.
Assoc Prof Thanawat Polvichai, an adviser to the Thai Chamber of Commerce, said the pandemic had a strong impact on the global and national economies, with more than half of the world’s GDP growth driven by the services sector.
He said the construction sector should support the economy, which aligns with global mega-trends, and many economists forecast infrastructure projects will be a major force.
“When the pandemic ends, China should make a bullish move after developing many transport routes and infrastructure projects that are ready to connect with Thailand,” said Assoc Prof Thanawat.
The government should accelerate development of infrastructure projects in eastern provinces as many foreign investors have slowed investment in Eastern Economic Corridor initiatives, he said.
Source: https://www.bangkokpost.com/business/1999079/bts-executive-transport-infrastructure-key