Concerns have been raised about foreign investment incentives amid prevailing domestic political uncertainty, says Finance Minister Apisak Tantivorawong.
Although economic conditions in the first two quarters are anticipated to be positive, especially for private consumption, worries persist about private investment, particularly foreign direct investment, Mr Apisak said.
The Private Investment Index (PII) contracted by 0.6% year-on-year in February, down from a 1.8% expansion a month earlier, according to Bank of Thailand data. The PII expanded by 3.5% year-on-year in 2018 after a 1.1% expansion in 2017 and a 0.1% contraction in 2016.
The military-led government has been pushing private investment incentives through infrastructure projects to drive the country's economy forward, according to Mr Apisak.
Such measures are aimed at offsetting an investment environment in which foreign investors have not decided to pour their investment capital into domestic projects, he said.
"Internally, there are still public investment projects to help drive the economy and create balance for sustainable economic growth," Mr Apisak said.
The Eastern Economic Corridor (EEC) is the military-led government's flagship investment scheme, spanning the eastern provinces of Chon Buri, Rayong and Chachoengsao.
The government hopes to complete the EEC by 2021 to create a hub of technological manufacturing and services connected to Asean by land, sea and air.
Fiscal Policy Office director-general Lavaron Sangsnit said the FPO has prepared economic stimulus measures if they are deemed necessary for implementation. No policies were revealed to the press.
The FPO forecasts Thailand's GDP to expand by 4% this year, but the forecast will be revised this month.
