Thailand pumps RM43 billion into industrial east to create regional economic engine

BANGKOK, June 28 (Reuters): Thailand approved on Tuesday a five-year investment of about 338 billion baht (US$9.64 billion - RM43 billion) in its industrial east from 2023, a government official said, part of efforts to boost the country's long-term growth.

The Eastern Economic Corridor (EEC) investments will cover 77 projects, mainly in infrastructure and utilities and create about 20,000 jobs, government spokesperson Thanakorn Wangboonkongchana said after a cabinet meeting

The government will invest in 61 projects worth 178.6 billion baht ($5.09 billion), with the remainder in public-private partnership projects, Thanakorn said in a statement.

The EEC, which covers three provinces east of the capital Bangkok, is a centerpiece of government efforts to boost growth and encourage investment, particularly in high-tech industries.

Meanwhile, The Nation Thailand reported that approved budget was ti et on Tuesday approved a budget of 330 billion baht to enhance infrastructure, utilities and communication networks in the Eastern Economic Corridor (EEC). The money will be spent on many projects up until 2027.

Prime Minister Prayut Chan-O-Cha said the Cabinet also waived value-added tax for data centre operators to support Thailand’s goal of becoming a regional digital hub.

Meanwhile, the Cabinet discussed establishing a fund to assist manufacturing and service companies affected by free trade agreements.

Prayut also vowed to seek ways to boost the country's potential in the logistics, smart industries and clean energy sectors.

Prayut said he believed the EEC would become the economic engine of both Thailand and the Asean region.

Separately, Prayut declined to answer press questions on whether the Palang Pracharath Party would propose more than one person as its prime minister candidate for the next election.

Prayut was the party's PM candidate at the last election but fared badly in a recent Nida opinion poll.

Prayut was only the fourth most popular choice for next prime minister in the poll, which was topped by Pheu Thai’s Paetongtarn Shinawatra.