Group cities four key strategies

They are liberalisation, investment diversification, infrastructure development and legislative and government reform.

"Further liberalisation of the local economy is essential if it is to increase its efficiency, attract foreign investment and maintain growth," said OBG editor-in-chief Andrew Jeffreys.

He said the financial-services industry was already undergoing a phased process of deregulation and liberalisation carried out by the Bank of Thailand and that such a move would bring technical expertise and product innovations to the local market.

The report also cited investment diversification as being essential for an economy that relies on exports for 70 per cent of its gross domestic product.

Thailand considers science and technology key to the Kingdom's industrial development. This will encourage strengthening the country's value chain, Jeffreys said.

"Infrastructure is often considered one of Thailand's key competitive advantages, and there are projects underway to improve certain aspects, notably the airport expansion," he said.

The second phase of Suvarnabhumi Airport's development is expected to be rolled out shortly, while the deep-sea port at Laem Chabang in Chon Buri province should continue to concentrate on road and rail development, in order to boost its position as a regional transportation hub, he said.

The final strategy is considering essential legislative and government reforms, in order to stimulate investment. Jeffreys said these reforms should offer opportunities for large-scale service and infrastructure proposals related to the government's mega-projects in the second half of the year.