President Tetsuji Banno disclosed the delay of new investment plans by Japanese investors after a discussion on January 12 with Yoichi Kato, president of the Japan External Trade Organisation (Jetro) and Santi Vilassakdanont, president of the Federation of Thai Industries (FTI) regarding the problematic situation in Thailand and its effect on foreign investments.

Banno said Japanese investors were prepared to delay new investments in Thailand after being challenged by many uncertainties in the country, including the coup on September 19, the series of bombings in Bangkok and the measures related to foreign investment issued by the government.

"The measure set to prevent short-term capital flows by forcing foreign investors to have a 30-per-cent deposit as their reserve requirement as well as the recent amendment to the Foreign Business Act will affect the confidence of Japanese who want to invest in Thailand," said Banno.

"The Bangkok bombings are the incident which has most shaken the confidence of Japanese investors, who are concerned about security of life and assets," he added.

Banno said that the uncertainties would not, however, impact short- to medium-term investments of about three years, which had been planned already.

"But new Japanese investors have decided to delay involvement in Thailand until they have evaluated the situation and direction of the country. They are quite worried about the current situation, particularly the bomb blasts," he said.