Thailand to Kick Start $45 Billion Economic Revamp Before Polls

Thailand’s military government is looking to start construction of projects under a 1.5 trillion baht ($45 billion) investment plan before the country’s possible return to democracy late next year.

The strategy will provide a master plan for future governments to follow, Prayuth said in July. Werachon Sukondhapatipak, a government spokesman, said in March the strategy is part of the constitution and legally binding on future administrations. 

While elections are possible by the end of next year based on the government’s road-map, an exact date has yet to be announced.

The plan for the corridor calls for a $6 billion upgrade of U-Tapao International Airport, $6.7 billion investment in railways, $12 billion for new cities and hospitals, and $15 billion for industry. The government expectsabout 80 percent of overall investment to come from the private sector.

If bidding for some projects is completed by mid-2018, construction can start later in the same year, Kanit said.

The government is seeking to develop sophisticated industries such as robotics, aviation maintenance and digital technology in the corridor’s three eastern provinces of Rayong, Chachoengsao and Chonburi. 

The administration has courted companies such as Airbus SE, Lockheed Martin Corp.’s Sikorsky Aircraft and Alibaba Group Holding Ltd. to assess the corridor’s potential. Earlier this month, it hosted hundreds of Japanese companies in Thailand to market investment opportunities.

Shares in Thai industrial estate developers Amata Corp. and WHA Corp.have rallied this year on speculation they could be beneficiaries of the push to develop the eastern seaboard.

One major challenge for bringing advanced industry to the corridor is a workforce skills deficit. Kanit said Thailand will import skilled labor initially, while the nation tries to improve education standards.