State of emergency hits economy hard

Prime Minister Samak Sundaravej has signalled that he is considering how to repeal the state of emergency in Bangkok. This is good news. In fact, the state of emergency should not have been declared in the first place.

It has caused panic in the international community. Several countries have issued travel advisories for Thailand.

It has also shocked investors, undermining their confidence in their ability to conduct business in the country. Thailand's image has been greatly tarnished, giving the impression that it is a military state.

The Thai Chamber of Commerce (TCC) and the Board of Trade (BoT) deserve praise for calling on the government to consider lifting the decree to prevent further damage to the economy.

These two powerful business federations correctly pointed out that it sent the wrong signal to foreigners doing business in Thailand.

Already partial strikes have hit Bangkok Port, the railways and other public services, hitting the economy hard following weeks of a political stalemate between pro- and- anti-government forces.

Sadly, many foreign traders have abandoned their plans to visit the Bangkok Gems and Jewellery Fair set for later this month.

Instead, most of those who had been expected to attend have opted for the Hong Kong Gems and Jewellery Fair, held around the same time, according to the Joint Foreign Chambers of Commerce.

However, Samak told the nation in a morning radio address that he would neither resign nor dissolve Parliament.

Pornsilp Patcharintanakul, deputy secretary-general of the TCC, said political strife was causing estimated daily losses of Bt3.5 billion in missed business opportunities.

Both the TCC and the BoT said they did not believe the national referendum proposed by the government would be effective in ending political turmoil.

Production and operating costs have soared as Thai creditworthiness has plunged, affecting banks and importers.

But nothing comes easy in trouble-plagued Thailand. Samak has let people know that he is keeping his options open. He told reporters not to jump to any conclusion as he was still toying with the idea of lifting the state of emergency.

"We are now trying to find a way out. We have found the door. We only need to look for the key," Samak said.

For the sake of Thailand, let's hope he finds it very quickly.