3 priorities to keep Japanese investors

An appropriate exchange rate of about Bt30 against the US dollar, the effective implementation of a flood-prevention system and human-resources development are the three priorities for keeping Japanese investors in Thailand.

"If Thailand can do these, Japanese investors will not stop investing in this country," Kyoichi Tanada, president of the Japan Chamber of Commerce, said yesterday.

The JCC, which represents 1,370 Japanese firms operating here, has been taking questions from its members on whether the floods will hit Thailand again this year. This reflects the concerns of not only Japanese but all foreign investors in Thailand, Tanada told the Post Forum's panel discussion on the "Road Map to Recovery".

About 70 per cent of Japanese plants damaged by the severe inundation last year now are able to resume their operations, while 20 per cent are not yet ready. The JCC expects those plants to take two or three months to reopen.

The Japan International Co-operation Agency (JICA) is cooperating with the Thai government in designing the flood-prevention system. If the JICA takes part thoroughly in designing the facilities, it should guarantee their effectiveness, Tanada said.

"Japanese and foreign investors here in Thailand export 50 per cent or more. Toyota, for example, exports pickup trucks to 113 countries, and it plans to increase the export volume of passenger cars as well. We believe that other products would do the same," said Tanada, who is president of Toyota Motor Thailand.

To facilitate Japanese investors, the JCC has asked the Thai government to stabilise the baht. If Japan's yen continues to appreciate, Jap-anese investors will not stop seeking opportunities to go abroad. The South Korean government set a good example in stabilising the won. Now, South Korean companies enjoy much profit.

"We want the Thai government to help Japanese investors on this matter," he said.

The increase in the daily minimum wage is no problem if Thai workers and human resources can develop their skills and efficiency, he said. One vehicle needs about 20,000-30,000 parts. Some labour-intensive parts can be made in other countries, but eventually all those parts will come back for assembly in Thailand.

Kan Trakulhoon, president and chief executive officer of Siam Cement Group, said he was optimistic about flood protection after the Constitution Court ruled that two financial decrees, one of which authorises the government to |borrow Bt350 billion to finance flood-management construction, are legitimate.

The next important step is to secure funding. If the government can do this along with cooperating with the private sector, Thailand can avoid a flood crisis, he said.