Baht boost: Thailand greenlights 200 billion for Bangkok transit line
Thailand has sanctioned investment applications amounting to a total of 200 billion baht, spearheaded by a Bangkok transit line and three data centres, offering a potential uplift to the country’s subdued economic growth.
The primary initiative is Bangkok Expressway and Metro Plc’s 109 billion baht (US$3.2 billion) investment in the Orange Line, aimed at connecting Bangkok’s western and eastern suburbs, stretching from Bang Khunnon to Min Buri, as indicated by a Board of Investment (BoI) statement following its board meeting yesterday, March 17.
Additionally, approvals for tax and other incentives were granted to three data centre and cloud-service projects. The most significant of these is China’s Beijing Haoyang Cloud Data Technology Co’s 72.7 billion baht (US$2.1 billion) project for a facility with a 300 megawatt information technology load in Rayong province, according to the BoI.
In January, the social media platform TikTok gained approval to invest 127 billion baht (US$3.8 billion) in data-hosting services, said BoI Secretary General Narit Therdsteerasukdi.
“Ensuring that the digital infrastructure, including data centres, aligns with the demand of foreign investors and local entrepreneurs is essential to Thailand’s competitiveness.”
The government aims to elevate economic growth this year to as much as 3.5%, up from 2.5% in 2024, by enhancing exports, tourism, and investment.
Investment applications surged 35% year-on-year to US$33 billion in 2024, marking the highest in approximately a decade, primarily driven by foreign firms’ ventures in the digital sector, reported Bangkok Post.
The board also amended regulations to promote projects in the healthcare sector, offering companies entering joint ventures with government agencies extended income-tax holidays if they construct hospitals with a minimum of 91 beds for overnight patients, as per the statement.
In similar news, TikTok has announced plans to invest around 300 billion baht in Thailand over the next five years, aiming to establish the country as a leading technology hub in ASEAN.
The decision followed a meeting on February 28 between Helena Lersch, TikTok’s Vice President of Public Policy, and Prime Minister Paetongtarn Shinawatra in Bangkok, according to Government Spokesperson Jirayu Houngsub.
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