Trade relations with city-state 'won't be hit'
The government, private enterprises and academics yesterday expressed confidence the government's abolition of high-level diplomatic cooperation with Singapore would not hurt the Kingdom's trade and economic growth.
Commerce Minister Krirk-krai Jirapaet said the government's action would not hurt trade and investment between the two countries. The government had wanted to take a strong stance against the recent meeting between ousted prime minister Thaksin Shinawatra and a key Singaporean politician. The government will ensure fair practice for all foreign investors without any bias, he said. The government on Tuesday decided to suspend indefinitely all high-level meetings with Singapore, including a ministerial dialogue next month, to protest the island's insensitivity to Thailand's political situation. Krirk-krai said the government would proceed with the nominee case involving Singapore-based Temasek Holdings without any preconception. Vallop Vitanakorn, secretary-general of the Thai Garment Manufacturers' Association, said the decision might prompt some Singaporean investors to halt their expansion plan for a certain period. However, it should not affect overall economic and business relations between the two nations. He said all sectors should be unaffected except logistics, as Singaporean investors are targeting Thailand as a hub for their logistics network. Aat Pisanwanich, director of the International Trade Studies Centre of the University of the Thai Chamber of Commerce, said it was a soft and appropriate measure. It should convince the Singaporean government to understand that the Thai government is concerned about the issue. This action should not affect the two countries' trade and investment relationship, particular in the business field, since it was limited to civil cooperation, he said. A source from the Singapore-Thailand Chamber of Commerce said the government's decision would make a new investor have second thoughts about establishing a presence here. The action will definitely have a psychological impact on business operators, as they are worried about the government's policy. The source said the Singapore-Thailand Enhanced Economic Partnership meeting, which is held every two years by the economic ministries and private sectors of the countries, would be suspended. This year was Singapore's turn to host the meeting.
Petchanet Pratruangkrai The Nation
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