Since the beginning of this year, I have frequently travelled to the provinces for business as a result of the property market growth and many operators’ regional expansion. These trips have opened my eyes to countless new perspectives. I must admit that much of the knowledge gained from my recent travels have been completely new to me, including economic, social and cultural structures.

Have you ever heard the saying “Bangkok is Thailand”? Well, I believe the saying is soon going to be outdated based on what I have seen during these journeys.

Following the announcement that the Royal Thai Government would spend 2 trillion baht to improve the country’s infrastructure earlier this year, we saw a flood of news articles on the subject matter. The size of the project and the sheer number of zeros in the figure are unimaginable for us laypeople. Instantly, it became the talk of the town. Discussions and analyses inevitably ensued. 

It was pure luck that I personally went to inspect a residential development site near Chaeng Watthana in March, so I took this opportune moment to visit the Thailand 2020 Exhibition at the Government Complex. As a taxpayer and business operator, I am personally interested in the project because the national infrastructure, upon completion, will have a major impact on numerous segments of the economy and society. It will undoubtedly have an impact on the real-estate sector. Having seen the exhibition in person, I have asked senior management and other employees at my organisation to go see it for themselves and to familiarise themselves with the project in hopes of benefiting our business planning in some ways. 

As I have mentioned, this project became a hot topic because, as part of the national agenda, it will likely affect the country’s economic, financial and social future on a colossal scale. As a result, the government itself, the private sector, academia and any relevant organisations have come out to express their points of view. From what I have gathered, most of the issues raised have been centred on the source of funding and worries about the project’s transparency and the country’s financial standing as a result of having to manage this large debt over an extended period. Every party that has voiced its opinion has done quite rightly so. After all, we are all part of Thailand. All of us have the right to know and find out more about the project.

As a businessman, I may hold a slightly different outlook on the project. It’s not that I care very little about the sources of funding or the debts such a large-scale development entails. But believe me when I say that Thailand has been in a vicious cycle of conflict stemming from differences of opinion and political prejudices to the point that sometimes we choose to only see a disadvantage or weakness, whether we are aware of it or not, and use it to attack the opponent instead of choosing to see possible advantages. I choose the latter, to imagine what benefits we could reap from the project, to see the bright side and to think first about the benefits to the country. I also choose to plan ahead and determine what my organisation could do to build on the success of this project. I have yet to see many people approach the subject from this angle. 

Based on what I remember from the exhibition, one of the first positive effects of this mega project that is the creation of over 500,000 jobs. Many an industry will profit from the infrastructure. The property sector will reap direct benefits. The transport sector will cash in on the dispersion of employment and the birth of new businesses. Manufacturers will enjoy improved feedstock and labour movements. The tourism sector will reap financial reward from stimulated regional tourism. More jobs will be created nationwide as a result of urban development dispersion.

All of this is nothing more than basic information presented to the public for ease of understanding. I believe that these positive effects are but the tip of the iceberg. In my opinion, we need to also look at the project’s multiplying effects. These are advantages that will likely happen but are not represented because they are difficult to quantify. I believe that these multiplying effects will not be limited to certain components of society and the economy, but they will have a widespread positive impact on the social structure in many ways.

The construction of a high-speed railway in England, connecting London to northern cities such as Manchester and Leeds, serves as a good case study because its nature is quite similar to Thailand’s infrastructure project. There is much-supporting evidence of numerous positive impacts on economic growth. For instance, business operators’ ease of access to labour forces and raw material sources, as well as new customers, has greatly been improved, especially in terms of having more choices. The railway has also enabled these connected areas across England to share industrial and business expertise, whether it be physical, social, cultural, economic or local. It is much like putting the right man on the right job. The overall national productivity has increased. There is no reason why all of this cannot happen to Thailand as well.

Let’s get back to Thailand. In addition to the estimated economic growth figure that the government has provided, there are other interesting multiplying effects, such as improved relations between business operators and people across the regions. This particular effect will bring about what we call knowledge spillovers. In other words, sharing knowledge will benefit society as a whole.

Based on the English case study aforementioned, we could theorise that the population and businesses in areas with access to this new infrastructure would have a higher income average than those in areas without as a result of the overall economic impact. The government would be able to collect more in taxes. In the English case, they expect to collect 1% more in taxes or about 500 billion baht a year. In the Thai case, I cannot be sure of the figure, but I can conclude that these multiplying effects will likely, in the long run, yield financial gains that may benefit us in many ways.

Going further, social problems such as education could be tackled within a more effective manner thanks to the movement of knowledge and quality people to areas with newly improved accessibility. With better income dispersion and an increase in gross revenue, we would likely see a rise in the employment of quality personnel to uplift the standards of education in these areas.

Just think about all these positive factors. We should think about what benefits we could reap from this project. Much like any investment, the more money you put in, the more you’d like to get back. It is not the sole responsibility of the team in charge of managing the budget, the project, or even the country to think about how to build on the success of this project. It is everyone’s responsibility. Maybe one of the multiplying effects could be the end of the many ideological, racial and social-class conflicts that have plagued us in recent years.

Similar to this:

What goes up must come down

How remote living doesn’t sacrifice quality of life

Does age really matter?