PROPERTY / INDUSTRIAL ESTATES

Soured investment climate hurts Amata sales

POST REPORTERS

The SET-listed industrial estate developer Amata Group said yesterday it could not set its land-sales target this year because investors had either delayed their investment or shifted their new projects elsewhere.

The capital-control rule and the amendhded Foreign Business Act have scared them away, said senior vice-president Viboon Kromadit.

He urged the government to clarify the two issues before more investors shifted their funds to neighbouring countries.

For this reason, Amata has yet to set its sales target for this year of its industrial land in Amata Nakhon Industrial Estate in Chon Buri and Amata City Industrial Estate in Rayong.

During its recent roadshows overseas, several prospective investors told Amata that they had decided to freeze their investment in Thailand until the government came up with a clearer policy on foreign investment.

Mr Viboon said most investors were confused by the central bank's 30% reserve rule and the amendments to the Foreign Business Act. They were also concerned that the new rules would add to their costs and urged the government to ease the restrictions to help restore the investment climate.

''Both issues have a psychological effect on numerous investors, who know very little about the details and conditions of the policies. So, the Bank of Thailand and the Commerce Ministry should try harder to clear the doubts,'' said Mr Viboon.

Some investors who were negotiating to buy land from Amata decided to call off the talks and expressed their intention to shift their investment elsewhere.

Signs of reluctance among foreign investors to investment more in Thailand were first detected last year as a result of persistent political uncertainty, unrest in the South and rising interest rates.

Land sales at Amata's two industrial estates last year dropped significantly by 60% to 545 rai from 1,479 rai in 2005.

AMATA shares closed yesterday on the Stock Exchange of Thailand at 10.10 baht, up 25 satang, in trade worth 37.41 million baht.

General News
Bangkok Post
Thursday January 25, 2007