According to Chainid NgowSiri-manee, managing director of Property Perfect Plc, Singaporean property firms that planned to expand in Thailand's real estate sector have put their investments on hold.

He added that his strategic partner from Singapore, Fraser and Neave, which holds a 33-per-cent stake in its subsidiary Krungthep Land Plc, has questioned the company about Thailand's political scene and may consider delaying other investments if the political crisis showed no signs of ending.

A campaign to shun Singaporean products followed the sale of Shin

Corps by Prime Minister Thaksin Shinawatra's family to the Singaporean firm Temasak Holdings in January. The sale also sparked continuing street protests and mass rallies calling for Thaksin's resignation.

Singaporean property firms started to expand their investments in Thailand three years ago, and have since poured Bt50 billion into the country. They include Fraser and Neave, Keppel Land, City Development and CapitaLand Group that set up a joint venture firm with TCC Land Co Ltd, which is owned by beverage tycoon Charoen Siriwattanabhadi.

Chainid said that two major Singaporean property firms had planned to close deals in Thailand this month, but have had to delay them. He declined to reveal particulars.

Earlier, rumour were circulating that CapitaLand through TCC Capital Land Co Ltd was negotiating to buy a major stake in Golden Land Property Development Plc. TCC Capital has denied the rumour.

Chanid added that when direct investment from Singapore is delayed, it will affect Thailand's gross domestic product enough to miss the government's growth estimate of 4.5 to 5.5 per cent this year. 

Somluck Srimalee

The Nation