Foreign investors hope clouds will start to lift

ELECTION 2007 / BUSINESS SECTORS ASSESS PROSPECTS

Foreign investors hope clouds will start to lift

Stability should boost economy for 2008

UMESH PANDEY

Foreign investors have welcomed the ''free, fair and calm'' elections held on Sunday, saying that the results would usher in a new era of growth for Thailand as the cloud of uncertainty over the country's economy lifted. ''What we see is that there is a certain degree of relief in the outlook of the country and we believe that this will make Thailand a more attractive investment destination,'' said Colin Ng, the director and head for Asia ex-Japan of equities for UOB Asset Management based in Singapore.

''The valuations of Thai equities had been lagging the region and now it is going to become more attractive,'' said Mr Ng, who manages about S$30 billion in assets.

His comments were echoed by others who said that they had been waiting for this kind of opportunity to start to invest in Thailand.

''We are today opening the third phase of our project and are very positive about the country's long-term prospects,'' said Allan Zeaman, a Hong Kong entrepreneur. He was speaking at the opening of the third phase of Andara Villas.

Investors are optimistic about having a government that is less focused on constitutional reform and more geared toward the economy.

''We foresee the government being more proactive in implementing policies to move the economy, and that is good for us and the country,'' Mr Ng said.

Mr Zeman said it was time for Thailand to move ahead with its economic plans as the country was starting to trail others in the region, including fast-rising Vietnam.

''Thailand has everything. The only thing it lacks is political stability and now we should have that with the passage of free, fair and calm elections,'' he said. He added that despite the ongoing squabbling about the formation of the government, the outcome was positive.

''Looking at the economic policies of the two major parties, you will see that they are very similar. ... Even if one of the two becomes the government it is going to be good,'' he said.

He added that the high number of votes for People's Power Party indicated that PPP could probably form a government.

''In a nutshell it is the voice of democracy that has spoken and we all have to listen to it, whether we like it or not,'' he said.

He said that Thailand could not afford to be complacent anymore and needed to encourage its businesses as countries in the region are moving to overtake Thailand.

''People have made their choice, and they want what they have elected, although there maybe some initial jitters, that will soon disappear and settle down as investors such as myself have confidence in the country's long-term prospects,'' he said. Other market watchers were more sceptical, saying that a coalition government would likely raise questions about its longevity.