Thailand has approved investment applications totaling 200 billion baht, driven by a new transit line in Bangkok and three data centers, aimed at bolstering the country’s sluggish economic growth.
The largest project is led by Bangkok Expressway and Metro Plc, which plans to invest 109 billion baht in the Orange Line.
This project will connect the western and eastern suburbs of Bangkok, from Bang Khunnon to Min Buri, as outlined in a Board of Investment announcement following their recent meeting.
Tax incentives and other benefits have also been granted to three projects in the data-center and cloud-services sector.
The most significant of these is a 72.7 billion baht investment by China’s Beijing Haoyang Cloud Data Technology Co for a facility that will handle an IT load of 300 megawatts in Rayong province, the BoI confirmed.
Earlier in January, the social media giant TikTok received approval for a $3.8 billion investment (equivalent to 127 billion baht) in data-hosting services.
BoI Secretary-General Narit Therdsteerasukdi stated, “Ensuring that the digital infrastructure, including data centers, meets the demands of both foreign investors and local entrepreneurs is essential for Thailand’s competitiveness.”
The government aims to boost economic growth to as much as 3.5% this year, up from 2.5% in 2024, by enhancing exports, tourism, and investment.
Investment applications surged by 35% year-on-year to $33 billion in 2024, marking the highest level in nearly a decade, primarily fueled by foreign companies’ investments in the digital sector.
Moreover, the board has updated regulations to encourage investments in the healthcare sector.
This includes offering extended income-tax holidays to companies forming joint ventures with government bodies to construct hospitals that provide at least 91 beds for overnight patients, as per the board’s statement.
