Fitch Ratings: Infrastructure Investment in Focus for Thailand's Long-Term Competitiveness

Stocks News Wednesday March 20, 2019 15:50 —PRESS RELEASE LOCAL

Bangkok--20 Mar--Fitch Ratings The benefits and risks of Thailand's infrastructure projects were among the key points of discussion raised by participants at Fitch Ratings (Thailand) Limited's semi-annual investor briefing on Thailand's Post-Election Economic and Infrastructure Development Outlook in Bangkok today. In his presentation on Thailand's economic outlook, guest speaker Mr Burin Adulwatana, Chief Economist/Strategist, Bangkok Bank Public Company Limited noted that the Thai economy is likely to expand by 3.8% 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. The country should continue to pursue the massive upgrades to its existing infrastructure despite uncertainty over the political landscape following the general election, boosting competitiveness and potential growth in the medium term. Mr Obboon Thirachit, Director in Fitch's Corporates rating team, emphasised that infrastructure development - particularly the rail mass transit systems - lags neighbouring countries. Thailand has about 10km of rail mass transit length per million people in Bangkok compared with around 30km in Singapore and 50km for Kuala Lumpur. Fitch expects infrastructure investment in the mass transit system, rail, roads, airports and ports to increase significantly over the next few years, helping to narrow this gap. Mr Vincent Milton, Managing Director of Fitch Ratings (Thailand), who opened the seminar to more than 100 corporate treasurers and bankers, insurers, asset managers, government and regulatory officials, 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. Fitch affirmed Thailand's Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BBB+' with a Stable Outlook on 7 December 2018.

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