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Thai junta approves US$58b, 8-year investment plan

[BANGKOK] Thailand's military government on Friday approved an eight-year investment plan worth 1.9 trillion baht (S$79.73 billion) to develop the country's transport system and ease logistics.

The investment plan, which starts this year, will help boost the economy by strengthening investment, employment, transportation and tourism, deputy government spokesman Colonel Sansern Kaewkamnerd told reporters after a cabinet meeting.

The plan will cut the country's logistics costs to 2 per cent in 2027 from 14.4 per cent currently, he added.

The plan will be funded from the annual budget, borrowings, state enterprises' revenues and public private partnerships, Sansern said.

The army seized power in a coup last May to end months of political tension, but has struggled to revive the domestic economy as exports remain weak and domestic demand sluggish.

Thailand's economy, Southeast Asia's second largest, grew only 0.7 per cent last year. This year, the government expects 4 per cent growth, driven by public spending.