Latest news with #SuksitSrichomkwan
The Star
07-05-2025
- Business
- The Star
Thailand turns to South Korea for major projects
Suksit Srichomkwan, deputy secretary-general to the Thai prime minister. — The Korea Herald SEOUL: As Thailand advances a sweeping plan to transform Asia's logistics landscape, it is inviting South Korean firms to participate in its one trillion baht or about US$30.5bil infrastructure initiative: the Land Bridge. The massive plan, spearheaded by the Thai government, aims to connect Chumphon on the Gulf of Thailand with Ranong on the Andaman coast via a 90km overland corridor of highways, railways and two deep-sea ports. Designed to bypass the congested Malacca Strait, the project is expected to reduce transport times by up to four days and lower logistics costs by approximately 15%. 'More than 85,000 ships pass through the Strait of Malacca annually, and that number is rising by 2% each year, raising the risk of congestion, accidents and delays,' said Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, in an interview with The Korea Herald on the sidelines of the Ignite Thailand-Korea Business Forum on April 22. With projections showing the strait nearing full capacity by 2030, Srichomkwan said that the Land Bridge is not merely an alternative but a necessity. 'The Landbridge complements – not competes with – Singapore and Malacca by diverting congestion and supporting feeder systems and smaller vessels. 'Beyond easing maritime traffic, the project could serve as a key driver of Thailand's long-term economic growth. 'The project could attract up to US$100bil in investment and boost Thailand's gross domestic product by between 1% and 2%, depending on the type of partnerships formed,' Srichomkwan said. In Thailand, the project could spur development in the southern provinces by expanding export routes for agricultural and seafood products, while also enhancing trade flows through the Eastern Economic Corridor – an economic zone spanning three eastern provinces. Cross-border cooperation is central to Thailand's bid to attract public and private investment, with positive talks ongoing with both China and Malaysia. One example is the project's reliance on goods from China to support its initial operations. In this regard, Srichomkwan expressed hopes of evolving the South Korea–Thailand relationship, traditionally strong in the travel sector, into deeper business and investment ties. He alluded to South Korean business models with the potential to scale in Thailand: 'We favour investors who bring the entire supply chain, not just final assembly.' Srichomkwan highlighted South Korea's strengths in shipbuilding, logistics, port operations and civil engineering, which make its companies particularly well-suited to seize the opportunity. 'Compared to past issues with Chinese contractors, Thailand has more trust in South Korean companies for reliable infrastructure development,' he said. 'Thailand is also very open to South Korean financial institutions supporting South Korean-led projects.' He noted that South Korean financial institutions and property developers could benefit from ground-floor investment opportunities, given that much of the project area is still undeveloped. — The Korea Herald/ANN
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Korea Herald
07-05-2025
- Business
- Korea Herald
[Hello Thailand] Thailand turns to Korea for key projects, eyeing mutual growth
$100 billion Land Bridge project aims to attract Korean firms across finance, shipbuilding, port operations and civil engineering As Thailand advances a sweeping plan to transform Asia's logistics landscape, it is inviting South Korean firms to participate in its 1 trillion baht ($30 billion) infrastructure initiative: the Land Bridge. The massive plan, spearheaded by the Thai government, aims to connect Chumphon on the Gulf of Thailand with Ranong on the Andaman coast via a 90-kilometer overland corridor of highways, railways and two deep-sea ports. Designed to bypass the congested Malacca Strait, the project is expected to reduce transport times by up to four days and lower logistics costs by approximately 15 percent. 'More than 85,000 ships pass through the Strait of Malacca annually, and that number is rising by 2 percent each year, raising the risk of congestion, accidents and delays,' said Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, in an interview with The Korea Herald on the sidelines of the Ignite Thailand-Korea Business Forum on April 22. With projections showing the strait nearing full capacity by 2030, Srichomkwan said that the Land Bridge is not merely an alternative but a necessity. 'The Landbridge complements -- not competes with -- Singapore and Malacca by diverting congestion and supporting feeder systems and smaller vessels." Beyond easing maritime traffic, the project could serve as a key driver of Thailand's long-term economic growth. 'The project could attract up to $100 billion in investment and boost Thailand's GDP by 1 to 2 percent, depending on the type of partnerships formed,' Srichomkwan said. In Thailand, the project could spur development in the southern provinces by expanding export routes for agricultural and seafood products, while also enhancing trade flows through the Eastern Economic Corridor -- an economic zone spanning three eastern provinces. Cross-border cooperation is central to Thailand's bid to attract public and private investment, with positive talks ongoing with both China and Malaysia. One example is the project's reliance on goods from China to support its initial operations. In this regard, Srichomkwan expressed hopes of evolving the Korea–Thailand relationship, traditionally strong in the travel sector, into deeper business and investment ties. He alluded to Korean business models with the potential to scale in Thailand: 'We favor investors who bring the entire supply chain, not just final assembly." Srichomkwan highlighted Korea's strengths in shipbuilding, logistics, port operations and civil engineering, which make its companies particularly well-suited to seize the opportunity. "Compared to past issues with Chinese contractors, Thailand has more trust in Korean companies for reliable infrastructure development," he said. 'Thailand is also very open to Korean financial institutions supporting Korean-led projects." He noted that Korean financial institutions and property developers could benefit from ground-floor investment opportunities, given that much of the project area is still undeveloped. One example already underway: 'SK Bioscience is interested in producing influenza vaccines in Thailand,' said Srichomkwan, highlighting biohealth and future industries as priority sectors for bilateral cooperation. Future opportunities are expected to grow as the area will be designated a Special Economic Zone offering streamlined regulations and targeted incentives for key industries. 'Tax incentives of up to eight years, subsidies and co-investment options will be available,' he said. 'We'll customize these benefits based on the strategic fit and demand of each investor.' The project is also expected to be insulated from political shifts as it progresses. 'This is a long-term endeavor,' Srichomkwan noted. 'A law has been drafted specifically for the zone, making government support legally binding, regardless of which party holds power." To strengthen economic ties, Thailand is planning a regional economic forum in Bangkok -- possibly this December -- with hopes to invite the Korean prime minister. 'There's also hope for deeper EPA negotiations and financial partnership models involving Korea and other countries in the region,' he said.
Korea Herald
24-04-2025
- Business
- Korea Herald
Thailand spots opportunity in major infrastructure projects
Thailand has strong potential to expand its infrastructure and financial systems, underpinned by a resilient economy, according to speakers at the Ignite Thailand-Korea Business Forum held Tuesday. At the event, Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, promoted the country's 1 trillion baht ($30 billion) Land Bridge project. It aims to link the Gulf of Thailand with the Andaman Sea through a 90-kilometer highway and railway, offering an alternative to the congested Malacca Strait. 'Through the project, we will establish a vital trade route, shortening time and bringing up the capacity,' Srichomkwan said. 'The Land Bridge project is only one of the many changes taking place in Thailand. Despite the heightened volatility in the global economy, mega projects such as the Land Bridge project will spur the growth of Thailand.' Dr. Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office of Thailand, also addressed the forum, outlining the strategic role of the Eastern Economic Corridor as a key driver in attracting foreign investment to the country. The EEC, a special economic zone on Thailand's eastern seaboard, is central to the government's push to boost innovation and economic competitiveness. 'The EEC is about developing the east coast of Thailand. It would be more efficient to concentrate the development in a certain region rather than the entire nation,' Sukmanop said. 'By designating the eastern coast of Thailand as a free trading zone, we can attract innovative investments. Through developing the ECC, we can contribute to the entire Thai economy.' The secretary-general noted that the EEC is designed to attract not only large-scale investments but also smaller ventures. 'The four pillars of growth are targeted investments, tailor-made incentives, total solutions and starting operations.' Dr. Soraphol Tulayasathien, senior executive vice president of the Stock Exchange of Thailand, spotlighted the appeal of the Thai equity market. 'When the US President introduced the tariffs, the Thai stock market plunged by more than 3 percent. But it has been showing recovery lately,' Tulayasathien said. He pointed to a range of ongoing projects fueling economic optimism, with the tourism sector playing a leading role in the recovery. 'Though the number of tourists declined during the pandemic, it has been on the recovery,' he said. Tulayasathien further highlighted the Stock Exchange of Thailand's long-standing cooperation with its Korean counterpart, the Korea Exchange. In May, the KRX secured a deal to modernize Thailand's clearing and settlement infrastructure — part of a broader effort to enhance market efficiency and investor confidence. 'The Stock Exchange of Thailand's partnership with the KRX has continued for over 20 years. The Thai stock market will improve through the partnership,' he said. Other speakers at the forum turned their attention to Thailand's macroeconomic outlook. Among them was Burin Adulwattana, managing director and chief economist at Kasikorn Research Center, a think tank affiliated with Kasikorn Bank Group, one of the nation's leading financial service providers. 'Overall, Thailand has faced a backlash in terms of tariffs, which are much higher than we had expected,' Adulwattana said, referencing the US administration's plan to impose a 36 percent tariff on Thai goods. While the Thai government forecasts gross domestic product growth between 2.3 and 3.3 percent this year, Adulwattana warned that retaliatory tariffs could shave as much as 0.9 percentage point off that estimate. Beyond external pressures, he identified structural challenges — including an aging population and persistently low labor productivity — as headwinds to long-term economic growth. Chaiyarit Anuchitworawong, senior executive vice president of Bangkok Bank, the largest commercial bank in Thailand in terms of total assets, presented an overview of the lender and the broader Thai banking sector, highlighting its resilience and international reach. 'Thai banks have a very good cushion to withstand any turbulence in the system, this is represented by the so-called loan loss provision,' he said. He underscored Bangkok Bank's commitment to facilitating outbound expansion for Thai conglomerates, while also serving as a key conduit for foreign direct investment. 'Bangkok Bank has a strong history of supporting conglomerates to go overseas as well as bringing in foreign direct investment into the country,' he said, adding that the lender was the first Thai bank to expand internationally.
