BANGKOK -- Despite recent upheavals, the Thai economy remains resilient and no foreign investor has said it will leave because of political reasons alone, a top trade official said.
The Thai government had earlier said the political turmoil of recent weeks could shave as much as 1.5 percentage points off the country's projected economic growth this year.
While acknowledging that investors will be monitoring the situation closely in the coming months, Thailand Trade Representative Kiat Sittheeamorn emphasized that “those who have already invested here are not panicked about the situation.”
He said the Foreign Chambers of Commerce here had sent a note to the government saying no companies were relocating just because of the political unrest.
“The economic fundamentals are strong,” said Mr Kiat and pointed out that the country's exports remained healthy.
The government is expecting Thailand to bounce back within three to six months, making a turnaround after a military crackdown on anti-government Red Shirt protesters last week sparked widespread arson and looting.
Thailand's Cabinet Tuesday approved a relief plan aimed at helping businesses and people hit by the political unrest.
The government has earmarked 50 billion baht (US$1.5 billion) for aid. It has pledged to pay 50,000 baht each to affected small businesses, and is also offering soft loans worth a total of five billion baht to small businesses in Bangkok.
According to a report released by Kasikorn Research Centre, the violence over the past weeks could cost the country as much as 230 billion baht in damage and lost revenue.
Kasikorn has also trimmed its economic growth projection for the year to 2.3 percent — even lower than the government's projection of 3.5 percent to 4.5 percent.
Kiat said the government will work hard to foster confidence among foreign investors. Trips are currently being planned to the United States and Europe “to create the right understanding” about the country's situation, he added.
The trade representative also expressed optimism about tourism, the sector worst hit by the recent turmoil in Bangkok.
Kiat noted that after the chaos at the Association of Southeast Asian Nations (ASEAN) summit in April last year, Thailand quickly rebounded to post the highest number of tourist arrivals last December.
When asked if the Thai government had favored the royalist “yellow shirts” — who wreaked havoc with their occupation of Bangkok's airports in 2008 — over red-shirt protesters, he denied it and said: “All those who violated laws will be prosecuted accordingly.”
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