Thailand's cabinet approved on Tuesday a plan to set up an infrastructure fund worth 100 billion baht ($2.77 billion), as the military government ramps up investment projects to help boost a sputtering economy. The army seized power in May 2014 to end months of political turmoil but has struggled to revive Southeast Asia's second-largest economy as exports and domestic demand remain weak. It has focused on investment projects to aid growth.
The "Thailand Future Fund" is expected to be launched within one or two months, Finance Minister Apisak Tantivorawong told Reuters after the weekly cabinet meeting. "Thailand plans to invest several big projects, particularly the logistics, and the government budget can only finance a few projects," Apisak told reporters later. "So the fund is aimed at raising money from the private sector seeking long-term investments as well as general investors," he said.
Initially, the finance ministry will put 10 billion baht in the fund before selling its units to Thai and foreign investors and listing them on the Thai bourse by the first quarter of 2016, Apisak said. Other details, including projects the fund will invest in, will be considered later by a fund committee, he said. Last month, Transport Minister Arkhom Termpittayapaisith told Reuters some 20 infrastructure projects worth nearly 1.8 trillion baht and covering rail, roads, air transport and ports should get underway before 2018.
In a bid to help the economy, the government recently approved various economic stimulus measures to boost consumption and offer a series of incentives to draw private investment. The ministry has forecast economic growth of 2.8 percent this year and 3.8 percent next year, driven by public investment. The economy expanded just 0.9 percent last year.
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