December 13, 2008
BANGKOK (AFP) - A Thai government body said Friday that the level of investment in the country was likely to hold steady next year despite political turmoil and fears of a global recession impacting the economy.
"We still maintain our target of 650 million baht for next year," said Atchaka Sibunruang Brimble of Thailand's Board of Investment, adding that top investors Japan, Europe and the United States would continue to be the kingdom's primary targets.
The BoI hopes to woo investors with promotional corporate tax incentives and labour protection, it said, along with an international roadshow beginning in Japan.
Thailand's economy has been rocked by six months of protests that culminated in a blockade of Bangkok's airports last month, only ending December 3 when the government was ousted in a court ruling.
The BoI said nearly 1,200 projects worth 436 billion baht (12.43 billion US dollars) had been approved between January and November 2008, estimating the total for the year would be around 450 billion baht compared with 586 billion baht last year.
"Some investors are still concerned about the situation in Thailand," Atchaka said after a meeting with foreign investors in the capital.
"The most important task now is to enhance supportive investment policies and to alleviate the adverse effects of the recent temporary closure of the airports in Bangkok."
The closure of Suvarnabhumi airport cost Thailand nearly four billion dollars in revenue, a government planning agency has estimated.
Nandor von der Luehe, chairman of Thailand's Joint Foreign Chambers of Commerce (JFCCT) said the political climate must settle with the election of a new prime minister on Monday.
"It doesn't matter which side a government comes from, if we have a strong and stable government, we will have stable economy," Von der Luehe said.
Von der Luehe admitted that the airport closures had damaged the kingdom's reputation.
"Closing the airport is akin to closing the door to your house. We have major concerns about tourism and foreign investors," von der Luehe added.
