InfoQuest (March 20,2019) -- In the seminar on Thailand's Post-Election Economic and Infrastructure Development Outlook, Mr. Vincent Milton, managing director of Fitch Ratings (Thailand) pointed out that political uncertainty has weighed on Thailand's long-term growth over the past decade. A smooth political transition could support the outlook on investment and growth. This should also be positive for continued development of the country's capital markets.
Mr. Burin Adulwatana, chief economist/strategist at Bangkok Bank Public Company Limited (BBL) noted that the country should continue to pursue the massive upgrades in its existing infrastructure despite uncertainty over the political landscape following the general election, boosting competitiveness and potential growth in the medium term.
The Thai economy is likely to expand by 3.8 percent in 2019 against the backdrop of a global economic slowdown. However, there are growing downside risks to Thailand's economic growth associated with US-China trade disputes.
Mr. Obboon Thirachit, director of Fitch's Corporates rating team, emphasized that Thailand's infrastructure development - particularly the rail mass transit systems - lags behind neighboring countries. Bangkok has about 10 kilometers of rail mass transit length per million people compared with around 30 kilometers in Singapore and 50 kilometers in Kuala Lumpur.
Fitch expects significant increase in investment into public transport infrastructure including the mass transit system, rail, roads, airports and ports, helping to narrow the gap.
Source: InfoQuest, by Tanit Tongnok / Kasamarporn / Ratchada, translated by Xinhua Silk Road
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