ENVIRONMENT / POLLUTION IN MAP TA PHUT

Plants, firms need to invest B10bn

WICHIT CHANTANUSORNSIRI

Addressing the pollution problems at the Map Ta Phut industrial estate will require around 10 billion baht in additional investment from factories and companies operating in the area, according to Kosit Panpiemras, the deputy prime minister and industry minister.

Mr Kosit did not offer specifics or name the companies involved.

But he said the growing environmental problems along the Eastern Seaboard had affected investor sentiment and economic growth, and that close co-ordination was needed between businesses and communities to address the problems.

The Eastern Seaboard, which is home to hundreds of factories and manufacturing plants, has faced growing problems of traffic, air and water pollution in recent years as a result of rapid industrial growth.

Mr Kosit, speaking yesterday at a seminar on investment trends organised by Than Setthakij newspaper, said the government was committed to spurring investment in the country.

He said tensions in the Map Ta Phut region had resulted in investor uncertainties, and noted that imports of capital goods from last October to December fell 3.7% from the same period last year.

Capital goods imports fell in January by 5.3% from the year before, a further sign that private investment was slowing.

Mr Kosit said companies along the Eastern Seaboard have already invested one billion baht to address pollution problems, and that environmental regulators were also working with factories in the area to reduce emissions and pollutants.

Foreign investment meanwhile should pick up following the recent signing of the Thai-Japan free-trade agreement.

"We should begin to see new investment in a number of areas, including steel, electronics and autos," Mr Kosit said.

"The economic engine [of investment] that has stalled for some time is starting up. Once new investment in Map Ta Phut comes, and foreign investment increases, economic growth will also pick up, together with exports and consumption."

Authorities project economic growth this year to drop to 4% from over 5% in 2006, due to the impact of weak investment and domestic consumption.

Mr Kosit expects the economy to turn around in the third quarter, particularly as political concerns ease and the new constitution takes shape to pave the way for elections at the end of the year.

Sommai Phasee, the deputy finance minister, said the government was reviewing new fiscal stimulus measures to help spur investment in sectors such as property and construction, but authorities were constrained in terms of the need to maintain overall fiscal discipline.

Bangkok Post

Last Updated : Tuesday April 10, 2007