Thailand takes more fiscal measures to sustain growth momentum

The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.

According to PM Paetongtarn's Secretary-General Prommin Lertsuridej, an economic stimulus panel chaired by the PM is set to consider the second phase of a cash handout plan and other steps at a upcoming meeting.

Easier rules for long-term land leasing and credit restructuring led by government banks are also on the anvil, he said.

The $500 billion economy is in a much better shape than a year ago when the Pheu Thai-led coalition took power, Prommin said.

He said growth prospects appear brighter next year with private companies pledging to invest about $22 billion in the first 10 months of this year and visa waivers and other incentives boosting foreign tourist arrivals.

The economy may expand about 2.7% this year, picking pace to 3% next year, he said, citing the Finance Ministry's estimates.

According to a Bloomberg survey, data released on November 18 shows Thailan's gross domestic product (GDP) rose 2.4% in the third quarter from a year earlier.

Paetongtarn's administration has built on the efforts by her predecessor Srettha Thavisin to put Thailand on the radar of foreign investors, which has started paying off with multibillion dollar investment commitments from companies such as Alphabet Incorporated and Microsoft Corporation, Prommin said.

The new wave of investment is not only from the U.S. firms, but Chinese companies like Huawei Technologies Company are also investing, Prommin said.

The country is leveraging its strength as a food processing hub to meet high market demand for valued added products, while also building its services industry including medical tourism, he said.