Ample liquidity a boon to infrastructure investment

Excess liquidity of Bt2.4 trillion offers a good opportunity for Thailand in financing the Bt2 trillion infrastructure projects, said Ekniti Nitithanprapas, deputy director-general of the Fiscal Policy Office.

All the investment will be financed by domestic funding. Ekniti said that in the initial stage, the government will issue bonds. Next, private companies will be invited to join the investment under the public-private partnership scheme.

"The investment will boost the country’s gross domestic product from Bt11.8 trillion to Bt20 trillion in seven years, as the GDP will expand by 5 per cent on average," he said.

"What’s necessary is the Finance Ministry must maintain the current account deficit to no more than 3 per cent of GDP, which should not have any negative impact given that the borrowing is to finance future expansion and increase the country’s competitiveness."