BANGKOK, 26 Mar 2014, Phatra Securities Public Company Limited has revealed that at present foreign investment is continuing at a slower pace than usual, as investors wait for positive signs on the local political scene.
Mr. Supawut Saichuea, Phatra Securities’ CEO, estimates that foreign investors, especially the Japanese, would start quickening the pace if a new government was formed within the next three months.
He said that Japanese investors, the the biggest foreign investor group in Thailand, would reconsider their plans, if Thailand was unable to hold a general election and establish a new administration within the next 6-12 months.
Mr. Supawut voiced his concerns over the possible effects of political factors on the local economy, saying that even if the nation is able to host a new round of national polls, or an intermediate Prime Minister is successfully appointed, a certain degree of economic risk would still be present. He predicted that conflicts between the parties involved would persist regardless of the outcome, inevitably reducing next year’s economic performance.
The CEO also revealed that, within a couple of days, his company would readjust the national Q2 GDP to accurately reflect the impact of the Charter Court’s recent ruling to annul February’s general election. Previously Phatra Securities had projected the nation’s first half GDP would grow in the range of 0.5 – 0.6%, a yearly GDP growth of 2.8% with 5% yearly export growth.