BMI View: The outlook for Thailand's construction and infrastructure sectors in 2015 continues to improve due to favourable monetary conditions, greater political certainty and growing major project momentum.
However, the medium-to-long-term outlook for both sectors remains highly uncertain due to the potential for further project delays, revisions and cancellations due to political and financing factors.
Key Trends And Developments
The military junta has been actively clearing the country's project application backlog and this could support a turnaround in fixed asset investment. In January, the Board of Investment (BOI) reported that 2014 was the best year in almost 50 years for investment promotion. In 2014 a total 3,469 projects worth THB2,192.7bn applied for investment promotion, an increase of 73% for projects and 117% in value.
Since the BOI resumed its meeting in July 2014, 161 projects have been approved.