Foreign investors reluctant to invest in Thailand on political worries
17-MAY-2008 Intellasia | TNA
May 17, 2008 - 7:00:00 AM
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Ongoing political turbulence, high oil prices and economic problems in Thailand have caused foreign investors to become reluctant to invest in the Kingdom, according to a survey conducted recently by the Thai Chamber of Commerce (TCC).
TCC vice president Dusit Nontanakorn said the survey, conducted among 156 foreign investors from May 12 to 14, found that 13.6% of the respondents wanted the Thai government to solve the country's political problems, followed by 10.7% who focused primarily on high oil prices and 10.3% on who said the economic crisis was most central.
On average foreign investors queried in the survey gave only 5.4 out of a total 10 points on political stability in Thailand compared to 7.3, 6.6 and 6.3 points given to Singapore, Vietnam and Malaysia respectively, said Dusit.
One third of the respondents, 33.3%, had decided to delay further investment in Thailand until after the political climate has improved while 27.8% said they would make further investment in the fourth quarter this year.
Some 52.9% of foreign investors were optimistic that Thailand's economy would stay at a fair level in the next six months. Meanwhile, Fukujiro Yamabe, president of the Japanese Chamber of Commerce in Bangkok, said Japan's small-and medium-sized enterprises were still interested in investing in Thailand.
Yamabe said 1,291 firms, members of the Japanese Chamber of Commerce in Bangkok, wanted the Thai government to maintain foreign investment policy, waive or reduce requirements on alien business law and to speed on making the Japan-Thailand Economic Partnership Agreement more efficiency.
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