BoT disturbed by potential shift of investment

BANGKOK, 7 June 2010 (NNT) – The Bank of Thailand (BoT) expressed concerns over the investment climate in Thailand after the recent protests of the anti-government United Front of Democracy Against Dictatorship (UDD) and the following riots took place.

BoT’s Senior Director, Suchart Sakkarnkosol disclosed on Monday that the BoT had dispatched BoT officers to collect data from domestic and international entrepreneurs whose businesses were affected by the rally and the riots. He stated the obvious impact might not show in the short run but tended to influence Thai businesses in the long run.

Foreign investors might shift their investment interests to Thailand’s neighboring countries such as Indonesia and Vietnam, while domestic investors might postpone their investment decision due to the lack of confidence.

Following the BoT’s concerns over the current drought crisis in Thailand, Mr Suchart viewed that the threat could somehow affect the income of the agricultural sector due to the decrease of business outputs. However, farmers’ income would not be much affected, as the higher crop price could motivate farmers to produce higher yielding crops.