Thai foreign investment outlook positive amid political shift
The Industrial Estate Authority of Thailand (IEAT) and prominent business leaders expressed optimism about foreign investment in the country this year, despite delays due to the formation of a new government. IEAT Governor Veeris Ammarapala stated that foreign investors are expected to understand the evolving political landscape in Thailand, including the transition towards a Move Forward Party-led coalition government.
At a recent industry forum, Ammarapala said…
“Investors believe investment policies in Thailand will not change.”
Investors are eager for the new government to be established promptly, as it is crucial for maintaining business confidence. The IEAT anticipates an increase in investment in Thailand in the second half of the year, partially driven by foreign investors seeking to invest in the Association of Southeast Asian Nations (ASEAN) to mitigate the impact of geopolitical conflicts such as the Russia-Ukraine war and China-Taiwan tensions.
Furthermore, the ongoing trade war between the US and China has prompted companies to explore new investment destinations.
The IEAT also believes that the proposed daily minimum wage increase by the winning political party will not affect investment plans, as the wage hike will need to undergo discussions between government, employer, and employee representatives.
Harald Link, president of B.Grimm Power Plc (BGRIM), expressed that the wage increase policy would not impact BGRIM’s business, as the company already pays its employees above the minimum wage. Link suggested that the government should concentrate on improving and developing labour skills to better serve targeted industries in the country, reported Bangkok Post.
At present, numerous Thai and foreign investors have postponed their investment plans, particularly in the power sector, as they await clear policies from the new administration. Investors are keen to know whether the state’s plan to purchase renewable power from power companies will continue, added Link.
