Water-Management Plan 'Critical For Investor Confidence: Thailand

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Water-management plan 'critical for investor confidence

ACHARA DEBOONME

NALIN VIBOONCHART

THE NATION

The government has 3-4 months to complete the comprehensive water-management plan so that Thailand can retain its status as a regional manufacturing hub, panelists said at a seminar yesterday.

At the Krungthep Turakij-hosted "Reinvent Thailand" seminar, panelists representing the private sector said that only a clear plan would keep foreign manufacturers, who were affected directly or indirectly, from relocating their business outside Thailand, while also continuing to attract more foreign direct investment.

"Thanks to the geographical location, Thailand is an attractive destination particularly when Asean becomes a single market and also as Burma is also slowly opening up. Following the floods, investors are now conducting feasibility studies to compare the cost of relocation. They will choose Thailand when there's something to compensate potential costs," said Kan Trakulhoon, president of Siam Cement.

He said companies are now conducting feasibility studies, which could take 3-6 months.

Setsuo Iuchi, president of Japan International Cooperation Agency, said that a survey of Japanese manufacturers in Thailand showed that 70 per cent said they would resume operations at the same sites despite the recent floods, 10 per cent are considering relocating to other locations in Thailand while the rest are undecided.

There are 4,000 Japanese companies in Thailand and half of them are in the manufacturing sector. About 20 per cent of the manufacturers have been directly hit.

Bandid Nijathaworn, president of Thai Institute of Directors Association, said the absence of a comprehensive plan will erode investor confidence. He is concerned about the decision-making process. He said it is better to have a plan with incomplete information instead of delaying having one.

Joining the discussions were Chen Namchaisiri, vice chairman of the Federation of Thai Industries; Pornsilp Patcharintanakul, deputy secretary-general of the Thai Chamber of Commerce and Pitak Pruittisarikorn, executive vice president of Honda Automobile (Thailand).

Pitak said the plan by industrial estates in flood-prone areas to construct flood barriers is just a solution, but a comprehensive plan is necessary to assure manufacturers that they could survive if water of this volume or more hits Thailand again.

Iuchi supported Atchaka Sriboonruang, secretary-general of the Board of Investment, who said that Thailand remains attractive with government help and skilled labour force. He also said that more Japanese companies will have to invest overseas to alleviate the strong yen effect. Confidence would then be the key to draw more investment.

He added that Asean countries would be integrated into a single market under the Asean Economic Community. Thailand should take this opportunity to make the industries more competitive and attractive for foreign investors. Under the strong support for FDI, infrastructure and skilled labour, Jetro is confident that Thailand could remain attractive for foreign investors if it has a long-term water management plan.

"Thailand should have a plan to cope with climate change," he said.

Anon Sanitwong na Ayudhya, director of the Southeast Asia System for Analysis Research and Training global change centre, has predicted massive rainfall next year, though not to the same extent as this year. He warned that Thailand could experience another disaster like this due to climate change. While water management strategies must be improved, he said that some problems found during the floods could be fixed within 5-6 months.

Thongchai Roachanakanan, an official of the Country and Town Planning Department, said that to prevent losses of this scale, Thailand needs more stringent enforcement of city plans.

"The city plan will help alleviate the problems if it is enforced efficiently," he said.

-- The Nation 2011-12-22

[Bakseedaa]

Thailand will continue to do , as it has done for the last 50 years.... absolutely F.A. The moneys will go the same way it has always gone.. not on new drainage but on new Mercedes....

[Thai at Heart]

3 months. Between, Western, Chinese, and Songkran New Years, they should plan to get their answer in May.

There is no way that a "comprehensive plan" will be created in this time frame, and to be honest, will the companies trust it even if it is created.

[SomTumTiger]

The plans already exist, they just need to be implemented.