Political Uncertainties Depress Foreign Investment

[george]

Political uncertainties depress foreign investment

BANGKOK: -- Thailand's domestic political uncertainty has impacted foreign investment, reducing the number of foreign firms seeking promotional privileges granted by the Board of Investment

(BoI) during the first quarter of 2006.

According to BoI secretary general Sathit Charnchaokul a total of 314 projects valued at Bt85.6 billion (US$2.1 billion) received promotional privileges from the agency during January to March this year. The projects would create more than 72,000 jobs.

Total investment in the 314 projects tumbled 52 per cent from the corresponding period of last year, he said, adding that investment in electronics and electrical appliances ranked first, accounting for more than Bt25 billion of total investment, up 37 per cent from the first quarter of 2005.

Expressing his optimism, Mr. Sathit said investment should improve during the second quarter as operators of several large projects planned to invest more in Thailand. He said he was confident that the BoI's 2006 investment target of about Bt800 billion (US$20 billion) could be reached.

Senior BoI officials are scheduled to conduct investment promotion 'roadshow' visits to South Korea, Taiwan, Japan and several European countries soon to persuade investors there to invest more in this country, Mr. Sathit said.

--TNA 2006-04-29