INVESTMENT : Japanese warn of slowdown

INVESTMENT : Japanese warn of slowdown.

POST REPORTERS

Japanese investors have warned that, although their immediate plans for Thailand remain intact, investment could decline in the future, says Santi Vilassakdanont, the chairman of the Federation of Thai Industries (FTI). He made the comment yesterday after meeting with executives of the Bangkok-based Japan External Trade Organisation (Jetro) and the Japanese Chamber of Commerce (JCC).

He said Japanese investors had pledged not to review projects planned for Thailand in the immediate future, but were a bit concerned about the tension brought on by the bombings on New Year's Eve.

They also remained unclear about the Bank of Thailand's capital control rule and the amended Foreign Business Act, he said. ''We will co-ordinate with the Board of Investment, Bank of Thailand and Commerce Ministry to clarify the regulations for the Japanese businessmen.''

JCC president Tetsuji Banno said Japanese auto and electronic companies would not review existing plans over the next three years. However, ongoing negative factors could affect long-term planning.

''Japanese firms that have never been in Thailand and had intended to move here may postpone investments, meaning no fresh capital flowing into Thailand,'' said Mr Banno.

He said Japanese expatriates seemed to be most anxious about the recent bombings in Bangkok, followed by the capital controls and the FBA.

Japanese businessmen, he said, had expected the Thai economy this year to be better than in 2006, but the violence the start of the year has eroded their confidence. ''It will depend on whether the government can deal with the situation.''

Jetro president Yoichi Kato said that unlike Malaysia and Singapore, Thailand currently lacked outstanding features to woo foreign investors.

Bangkok Post
Sunday January 14, 2007