Thailand delays launch of US$2.9b infrastructure fund to second quarter

[BANGKOK] Thailand plans to launch a 100-billion baht (S$4 billion) infrastructure fund in May or June this year, the finance minister said on Wednesday, as the military government seeks to fund investment projects to boost a sluggish economy.

Last month, a ministry official said the fund would go public in the first quarter.

The "Thailand Future Fund" will initially sell units worth 40 billion baht to 50 billion baht to Thai and foreign investors, Apisak Tantivorawong told reporters. "The fund will also be an alternative for people because its return will be higher than deposit rates, likely at 7 per cent to 8 per cent," he said.

Banks' deposit rates are about 0.5 per cent to 1.5 per cent.

Mr Apisak previously said the ministry would put 10 billion baht into the fund before selling its units to the public.

Growth in Southeast Asia's second-largest economy has lagged its peers since the military seized power in May 2014 to end months of political unrest.

REUTERS