RULING COULD SLASH ECONOMIC GROWTH

       A year-long court-ordered suspension of investment projects by PTT and other state enterprises could slice 0.4 percentage points off economic growth next year, Finance Minister Korn Chatikavanij said yesterday.
       The economic impact of the long-running environmental dispute between heavy industry and communities around the Map Ta Phut Industrial Estate could be considerable, Korn said during a videoconference from Turkey.
       Last Tuesday, the Central Administrative Court issued an injunction against 76 industrial projects worth Bt400 billion in Map Ta Phut and surrounding areas in Rayong.
       The government has appealed the court ruling.
       Prime Minister Abhisit Vejjajiva also expressed concern that foreign investors could be driven away and locate their plants in neighbouring countries like Vietnam, due to environmental and regulatory issues.
       Korn, who is attending the twin annual meetings of the International Monetary Fund and the World Bank in Istanbul, said PTT and other state enterprises planned to spend Bt240 billion in 2010 and 2011 under the government's second stimulus package. These projects could be further delayed, because they are related to the 76 projects halted by the court.
       Of these investment plans, PTT, the country's largest energy conglomerate, alone will pour Bt100 billion into Map Ta Phut.
       In the event these investment schemes are delayed for a year, growth in the country's gross domestic product (GDP) could be dented 0.4 percentage points next year, he said.
       This is a major concern for the government, he said.
       Public- and private-sector analysts have predicted GDP will expand 2-3 per cent next year if large-scale public and industrial investment schemes are implemented as planned.
       Political uncertainty is another factor causing the jitters for foreign investors, he said.
       On another note, Asean finance ministers have agreed to create an Asean Infrastructure Fund to invest in regional projects, he said.
       This will be endorsed by Asean leaders during their summit in the Thai resort of Hua Hin later this month.
       Asean also plans to set up |a panel to select cities where |the head office for the multilateralisation of the Chiang Mai Initiative, a reserve pool among Asean and Japan, China and South Korea, will be situated.
       The US$120-billion (Bt4 trillion) reserve pool, aimed at providing an emergency credit line to members in times of financial crisis, will be kicked off next year.
       Korn said he had proposed Bangkok as a candidate.