FTI rattled by PM Srettha’s ousting: Investors on edge
The Federation of Thai Industries (FTI) voiced alarm following the Thai Constitutional Court‘s shock decision to remove Prime Minister Srettha Thavisin from office yesterday. Kriengkrai Thiennukul, Chairman of the FTI, warned that the ruling could put a brake on both local and foreign investment as investors rethink their strategies amid the political turmoil.
Thailand is already wrestling with major economic hurdles, and political stability is key to keeping investor confidence intact, said Kriengkrai.
“Investors, both Thai and foreign, are looking for stability and continuity, which has been in short supply.”
The FTI has reportedly been fielding a surge of inquiries from foreign investors, particularly from the United States, Europe, and Japan, about how the political shake-up might affect their investments.
Long-standing Japanese investors, who have been a fixture in Thailand for decades, may begin to adjust to the new political landscape. Kriengkrai highlighted that these investors are particularly anxious about potential instability and are keeping a close eye on unfolding developments.
Wisit Limluecha, Vice Chairman of the Thai Chamber of Commerce, also expressed surprise at the ruling and stressed the urgency of restoring political stability.
“We need to select a new prime minister swiftly, whether from the current ruling party or the opposition, to prevent further erosion of investor confidence and economic stability.”
Economic hurdles
Strong leadership is vital for attracting foreign investment and tourism, both of which are crucial for Thailand’s economy. Wisit highlighted the importance of swift action to restore confidence and ensure that Thailand remains an attractive destination for investors and tourists alike.
The removal of the prime minister comes at a challenging time for Thailand, which is facing various economic hurdles. The political uncertainty adds another layer of complexity, making it essential for the government to act quickly to reassure investors and maintain economic stability.
The FTI and the Thai Chamber of Commerce are closely monitoring the situation and are urging the government to move swiftly to appoint a new leader. Both organisations are emphasising the need for continuity and stability to prevent any further negative impact on the economy.
Thailand’s economy heavily relies on foreign investment and tourism, and any prolonged political instability could have far-reaching consequences. The business community is calling for immediate and decisive action to ensure that the country can navigate through this turbulent period and emerge stronger, reported Pattaya News.
Investors are particularly concerned about the long-term implications of the current political instability. The FTI is urging the government to provide clear and transparent communication to reassure both local and international investors.
The recent developments have put a spotlight on the importance of political stability for economic growth. As Thailand navigates through this period of uncertainty, the actions taken by the government in the coming days will be crucial in determining the country’s economic future.
