He noted that all of the political parties competing in the current election campaign had a policy of investing in infrastructure to drive the country's growth.
Meanwhile, the government's current policy of achieving a balanced budget by 2015 means it will have to open up its megaprojects to private firms rather than investing in them by itself, he said.
At the seminar "Decoding Costs" held yesterday by the Home Builder Association, he also suggested that the private sector manage rising costs by pooling bargaining power, joining together to order construction materials.
Saowacon Trantribul of the Commerce Ministry's Bureau of Trade and Economic Indices said the price of construction materials had increased 20.2 per cent since 2005, due especially to rising steel prices in the world market.
In just the first five months of this year, constructionmaterial prices had climbed 5.6 per cent since yearend, largely on steel prices, she said. And prices of steel and cement, which account for more than 50 per cent of her construction cost index, are expected to continue rising.
Petroleummarket expert Manoon Siriwan said the oil price would continue rising for the next two years to about US$120 per barrel even though it looks like dropping to $80-$84 in the third quarter of this year.
"The government has to find alternative energy to replace oil if it wishes to stabilise the country's energy supply in the long term," he said.
Meanwhile, Home Builder Association president Viboon Chantaradilokrat accepted that increased construction costs by 5-10 per cent would force higher home prices by the same percentage this year when compared with 2010.
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