ID :
151936
Wed, 12/01/2010 - 10:22
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http://m.oananews.org//node/151936
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Infrastructure fund to help reduce short-term capital influx, says SEC
BANGKOK, Dec 1 – Establishing an infrastructure fund will help reduce inflows of short-term foreign capital into Thailand, according to Securities and Exchange Commission (SEC) Secretary-General Thirachai Phuvanatnaranubala.
Through the fund, he said, short-term capital would be changed into long-term funds for investment in the development of infrastructure projects in Thailand. It would help relieve the state investment burden and boost the country’s competitiveness in the long run.
He said the infrastructure fund is expected to attract both domestic and foreign investment to Asia since the SEC permitted the fund to invest in both brown-field and green-field projects.
The fund might also draw attention from foreign investors who wish to reduce their holdings in US dollar-denominated assets and turn to invest in the countries in the emerging market if returns are sufficiently attractive.
SEC recently approved, in principle, establishment of an infrastructure fund and plans to make the fund grow continuously, becoming acceptable and recognised.
Anticipated investment in the infrastructure fund would come from both the public and private sectors.
Mr Thirachai conceded many countries in the emerging market have been affected by large foreign capital inflows and heavy fluctuations in the capital movement.
In Thailand, foreign capital flowed continuously into the bond market at rates 10 times higher than that of last year.
It is projected that foreign capital would continue its influx partly because foreign investors are worried about the bail-out plan in the debt-ridden banking system and debt repayment prospects in Europe.
“An adjustment to investment portfolios by foreign investors, although it is just small, can lead to volatilities. An attempt to turn short-term capital into long-term capital, if successful, is considered a win-win situation,” Mr Thirachai said. (MCOT online news)
Through the fund, he said, short-term capital would be changed into long-term funds for investment in the development of infrastructure projects in Thailand. It would help relieve the state investment burden and boost the country’s competitiveness in the long run.
He said the infrastructure fund is expected to attract both domestic and foreign investment to Asia since the SEC permitted the fund to invest in both brown-field and green-field projects.
The fund might also draw attention from foreign investors who wish to reduce their holdings in US dollar-denominated assets and turn to invest in the countries in the emerging market if returns are sufficiently attractive.
SEC recently approved, in principle, establishment of an infrastructure fund and plans to make the fund grow continuously, becoming acceptable and recognised.
Anticipated investment in the infrastructure fund would come from both the public and private sectors.
Mr Thirachai conceded many countries in the emerging market have been affected by large foreign capital inflows and heavy fluctuations in the capital movement.
In Thailand, foreign capital flowed continuously into the bond market at rates 10 times higher than that of last year.
It is projected that foreign capital would continue its influx partly because foreign investors are worried about the bail-out plan in the debt-ridden banking system and debt repayment prospects in Europe.
“An adjustment to investment portfolios by foreign investors, although it is just small, can lead to volatilities. An attempt to turn short-term capital into long-term capital, if successful, is considered a win-win situation,” Mr Thirachai said. (MCOT online news)
