Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search

Growth forecast for 2021 upheld at 4%

Growth forecast for 2021 upheld at 4%

THAILAND: Despite a surge of new infections in Thailand, the government is maintaining its forecast for economic growth at 4% next year.

By Bangkok Post

Monday 28 December 2020, 09:24AM

An artist’s rendering of the planned rail link to three airports in central Thailand. Photo: Bangkok Post

An artist’s rendering of the planned rail link to three airports in central Thailand. Photo: Bangkok Post

Deputy Prime Minister Supattanapong Punmeechaow said the government expects the new surge of infections will be short-lived.

Mr Supattanapong said international arrivals are projected to return to normal in April after the successful introduction of vaccines in many countries.

He said the government’s economic policy next year will focus primarily on accelerating the disbursement of fiscal 2021 budget expenditure of B3.2 trillion and infrastructure development projects.

More infrastructure projects under public-private partnerships will be approved by the government next year, said Mr Supattanapong.

“The government will try its best to keep investment momentum going until 2022, especially for private investment, which is projected to improve in 2021 and 2022,” he said.

The National Economic and Social Development Council projected private investment would recover to an expansion of 4.2% in 2021 from falling 8.9% in 2020. Public investment is projected to grow by 12.4%, slightly down from 13.7% in 2020.

Mr Supattanapong said the government is committed to improving laws and regulations; facilitating ease of doing business and implementing investment policy to attract foreign investment in 2021-22; and focusing on new S-curve industries (aviation, logistics, biofuels and biochemicals, digital, medical services and robotics).

Domestic industries need continuous promotion and support to upgrade their production using automated systems, he said.

Internal - Phuket News TV

To spur private investment in 2021, the Board of Investment (BoI) on Dec 21 approved additional measures, including a 50% corporate tax deduction for five years for investment projects worth at least B1 billion.

The BoI usually offers a maximum exemption from corporate income tax of eight years.

The government offers firms in the Eastern Economic Corridor a corporate income tax exemption of up to 13 years and a 50% tax reduction for up to five years.

The board also agreed to extend the promotional measures for another two years to investment projects in special economic zones in 10 provinces.

The measures cover 300 categories of investment, with privileges offering a range of corporate income tax exemptions for a period of 3-8 years. For 14 targeted industries, including agriculture, fisheries, textiles, garments, leather, furniture, jewellery and ornaments, investors are eligible for another 50% corporate income tax deduction for five years.

The 10 provinces referred to here are Chiang Rai, Kanchanaburi, Mukdahan, Nakhon Phanom, Narathiwat, Nong Khai, Sa Kaeo, Songkhla, Tak and Trat.

The BoI also approved another two-year extension (2021-22) for the measure to promote investment in the five southern provinces of Narathiwat, Pattani, Satun, Yala and four districts in Songkhla.

Investors are eligible for three, five and eight years of corporate income tax exemption, depending on the category.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.


maverick | 04 January 2021 - 22:11:37

Galong@ Baht is strong due to current account surplus which sits at the moment at over $320billion - nothing to do with anything being said and foreign money continues to flow in 

Galong | 04 January 2021 - 12:03:05

Are all of these 'stretches of the truth' meant to justify the unrealistic strength of the baht?  There is no reason for the Baht to be strong, none. All that does is hurt all but a few.

Sandbar | 30 December 2020 - 06:23:52

International travel to return to normal by April? Good luck with that! I think people should understand that the current vaccines do reduce the risk of contracting the virus. However, it does not stop the vaccinated from still infecting other people! Long way to go yet! April....which year?

Kurt | 29 December 2020 - 13:47:35

@CaptainJack, you are right. With Patong tunnel, light rail, submarines, more commissions to make. Keep the population calm with just giving Samaritan goodies and ask them keep a photo of royalties in front of them for the daily thai tv  Nevermind the unemployed Thai. We even make another 1 million illegal foreign workers legal. So the Sino-Thai elite keep their working force cheap. Great times.

CaptainJack69 | 29 December 2020 - 12:38:07

The government still has over 3 trillion Baht left for "infrastructure projects" next year but is providing nothing for the millions of people out of work indefinitely as a result of their draconian COVID measures? So they can build more unnecessary underpasses but they wont feed their people? Nice.

How can the economy grow 4% with the 20% provided by tourism destroyed?

cpfleger | 28 December 2020 - 20:57:48

Mr Supattanapong, as long as there is a quarantaine there will be no notable international arrivals. Obviously you are also not aware of the fact that vaccination will take some time. And I thought Thailand does not want to have the tourists back like before, but only "high class high spending" fata morganas? 
Naming numbers w/o real arguments is neither smart nor will it make the situa...


Have a news tip-off? Click here


Phuket community
Phuket protected forest encroachment to be handed to DSI

Was anything ever done about the house that was illegally built up there (covered by The Phuket Sun...(Read More)

Vaccination packages mulled

Wow, hahahaha, that B150,000 'tour package' is really something. A real invitation for touri...(Read More)

Life will be different with Biden, government told

Time for Thailand to x-ray again the Thai labor working forces in factories and the fishing fleet on...(Read More)

Vaccination packages mulled

Diverting vaccine from the populace to foreigners- classic. Stand by for a u-turn in 3, 2, 1. No on...(Read More)

Phuket van driver pleas for police action over attempted murder

Cherng Talay police station is located at centre of drugs hot spot of Phuket, is still in ;shock'...(Read More)

Police confirm Phuket bypass road speed limit is 50km/h

Read the confusement, 100km, 90 km, 80km, 50km. What a 'murmuring mess'. Is it so difficult ...(Read More)

Police confirm Phuket bypass road speed limit is 50km/h

About 6 years ago was the start of producing number plates cheaper. Meaning, more inferior painting....(Read More)

Nigerian man arrested in Patong for drugs

Just what Phuket needs...a scum bag criminal contributing nothing but crime. Jail him for a good wh...(Read More)

Phuket van driver pleas for police action over attempted murder

Proof of what a bunch of criminal thugs these miserable curs are...99% of'em. All it takes to m...(Read More)

AstraZeneca jabs tipped to get nod for ‘emergency use’

How many guinea pigs they need? The General-prime minister is already vaccinated. I am sure, with hi...(Read More)