August 22, 2008
Bangkok - Political turmoil and skilled labor shortage made Thailand become less attractive to investors in recent years, according to a World Bank survey.
Almost 70% of the business operators were surveyed during April-November, 2007.
Macroeconomic instability was said to negatively affect the investment climate. More than 60% said the government’s uncertain policies weakened last year’s investment climate.
"Business operators' perception on the investment climate in Thailand significantly dropped in 2007," Xubeu Luo, a World Bank economist, told reporters.
Skilled labor shortage, poor access to capital and insufficient but costly regulations were all negative factors for Thailand.
Unreliable infrastructure also hurt the investment atmosphere.
More than 1,000 businesses nationwide were interviewed in this survey covering nine sectors: auto parts, textiles, electrical appliance and food processing.
