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BANGKOK: Thailand's economy is expected to grow more than 3% this year, driven by stimulus measures and foreign investment, the finance minister said on Monday.

Foreign investors are more confident in the Southeast Asian country and there will be more major foreign investments this year, Pichai Chunhavajira told reporters.

"I still think (growth) should be more than 3% ... By the end of the year, there will be two to three large foreign investors coming in," he added.

Thailand is expecting at least 1 trillion baht ($29.7 billion) worth of overall investment applications this year.

On Monday, the government launched the second phase of its signature $14 billion handout scheme, distributing 30 billion baht ($896.4 million) among 3 million people.

The government has targeted an uptake of 45 million people in the handout programme, which provides 10,000 baht to each person.

The first phase for 14.5 million people started last September.

The second phase of the handout scheme should add 0.1 percentage point to growth, Deputy Finance Minister Paopoom Rojanasakul told reporters.

Thai economy to grow more than 3% this year, official says

The government plans to implement the third phase of the scheme in the second quarter of this year.

Pichai also said a new candidate for the central bank board chairman would be proposed by Feb. 7, after its earlier nominee was disqualified.

Last month, Thailand's state advisory council said the government-backed candidate for chair of the board of the central bank was ineligible because of a recent political role he held.

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