Thailand Proposes New Fund for Southeast Asian Sub-Region

Thailand has proposed starting a new Southeast Asian fund to boost sources of financing for transportation infrastructure and other projects in five Mekong River basin countries.

Thai Prime Minister Prayuth Chan-o-cha made the proposal Saturday during a speech in Bangkok at the eighth Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) summit, which was attended by leaders of Cambodia, Laos, Myanmar and Vietnam.

“Thailand has attached great importance to the issue of sustainability of the source of financing and, therefore, has proposed to related financial agencies to consider possible models for an ACMECS Fund for financing projects,” Prayuth said.

Because Bangkok is spearheading the fund, it will contribute seed money, Prayuth said, without elaborating.

The prime minister made the proposal about the fund on the same day that leaders of the five-member economic bloc adopted a five-year master plan, which Prayuth had described as the first of its kind in the sub-region. The master plan aims at propelling the economy in the basin by harmonizing trade and investment rules, he said.

Prayuth said senior financial officials from the five nations would meet in Thailand later this year to discuss details for establishing the fund.

He did not provide more information, but Reuters quoted Thai foreign ministry official Arthayud Srisamoot as saying that the fund would raise money through the sale of stocks and bonds by issuing debts for projects.