BoT Measure Controlling Foreign Capital Inflows Has Proved Effective

[Jai Dee]

DPM Pridiyathorn: BoT measure controlling foreign capital inflows proved effective

Deputy Prime Minister and Finance Minister M.R.Pridiyathorn Devekula (ปรีดิยาธร เทวกุล) indicates that the Bank of Thailand’s (BoT) measure controlling foreign capital inflows has proved successful.

M.R.Pridiyathorn affirms that Japanese investors have not withdrawn their investments from the country as according to rumors.

He said that the BoT’s measure has contributed to the weakening of the baht which benefits the export sector.

However, he admitted that some foreign investors are not satisfied with the measure.

Source: Thai National News Bureau Public Relations Department - 23 January 2007

[Jai Dee]

Japanese investors are 'worried'

Chamber of Commerce to study impact of BOT measure and proposed law changes

The Japanese Cham-ber of Commerce (JCC) will shortly set up a committee to study the impact of the Bank of Thailand's 30-per-cent withholding requirement and the proposed amendments to the Foreign Business Act. JCC president Tetsuji Banno said several Japanese investors had voiced their concerns over the central bank's recent decision to impose the measure on capital inflows.

However, Banno said the requirement was unlikely to affect Japanese investors' decisions in the short and medium term as none of JCC's 1,200 members had expressed an intention to withdraw investment from Thailand. Banno yesterday met with Deputy Industry Minister Piyabutr Cholvijarn and Board of Investment secretary-general Sathit Charnchaokul to address concerns from Japanese investors.

Banno said the new committee would summarise the result of its study next month. Then he will use this information in discussions with the central bank and Commerce Ministry. Although the withholding requirement would affect foreign institutions which approve loans to local companies, Japanese companies here normally seek loans from their parent companies in Japan.

Banno said Japanese investors were confused by the proposed revisions to the Foreign Business Act, even though some issues have been partially clarified by the Commerce Ministry. Japanese investors would like to discuss details of the law with the ministry.

He said that while these legal changes should not affect Japanese investors' decision to invest in Thailand, they did have a psychological impact on investment. He called on the government to relax enforcement of the regulations.

Banno attributed the slowdown of foreign investment to the global economy rather than changes in the law. He said the government should in future introduce new regulations to attract foreign investment.

Source: The Nation - 23 January 2007

[lingling]

Deputy Prime Minister and Finance Minister M.R.Pridiyathorn Devekula (ปรีดิยาธร เทวกุล) indicates that the Bank of Thailand’s (BoT) measure controlling foreign capital inflows has proved successful.

?!? It's not April yet, is it?

[The Dan Sai Kid]

Good to see they are trying to inject some humour into Thai politics!

[wintermute]

If thai politicians will do backflips for anyone it will be for the Japanese. The Japanese are the single biggest investors in Thailand and they have an enormous stake in everything Thai. They already control 90% of the consumer vehicle market in Thailand but they also have investments in Thai infrastructure and other projects. If Japan started pulling out Thailand would be extremely screwed. Also, Japanese companies would be REALLY unhappy with eating any kind of losses based on bad policies. You really don't want to piss off the world's second biggest economy either.

[sfokevin]

Can the Minister M.R.Pridiyathorn Devekula explain why the Baht value moves in this manner?

Seems like someone is having a little trouble keeping it up

Edited January 23, 2007 by sfokevin

[Mid]

busy people today ....................

12 hits

[cclub75]

He just have done it : "measure controlling foreign capital inflows has proved successful" !

I mean, it's crystal clear on the graph that it's very effective. THB is gaining value versus USD.

Tomorrow, Miss "Doctor" Tarisa will probably make the same statement. Hopefully shame doesn't kill...

Can the Minister M.R.Pridiyathorn Devekula explain why the Baht value moves in this manner?

Seems like someone is having a little trouble keeping it up

[Jai Dee]

LCA to discuss with FeTCO concerning impact of 30-percent capital reserve

The Listed Company Association (LCA) will join hands with the Federation of Thai Capital Market Organizations (FeTCO) next week to discuss over the 30-percent capital reserve which has led to repercussions onto the private sector.

The Chief Executive Officer of Banpu (บ้านปู) Public Company Limited Mr.Chanin Vongkusolkit (ชนินท์ ว่องกุศลกิจ) revealed that LCA has conducted a survey of the impacts of 30-percent capital reserve, regulated by Bank of Thailand. The regulation is said to cause damages the financial institutions and exports companies.

Mr.Chanin further stated that LCA will inform MR Pridiyathorn Devakula, deputy prime minister and the finance minister, about the impacts of the regulation so that the Bank of Thailand will implement measures to increase capital market and delay debentures and fixed incomes.

Source: Thai National News Bureau Public Relations Department - 24 January 2007