But political conflict a major dampener: Amcham chief
Finance Minister Korn Chatikavanij last night reassured American businessmen the government was ready to manage the security situation in the greater Bangkok area during the planned anti-government rally from Friday until Sunday.
Speaking on behalf of Prime Minister Abhisit Vejjajiva, Korn urged US business leaders in Bangkok and in the US via a teleconference to have confidence in the government's ability to handle the situation. The government will use the rule of law to solve the protracted political issue and deal with anti-government protests.
Korn was speaking at an event held by the American Chamber of Commerce in Thailand (Amcham).
Abhisit had been due to speak at the event, but his aides cancelled the premier's participation at the last minute.
Korn also told foreign business leaders the Thai economy is recovering.
Gross domestic product projected to grow 4-4.5 per cent this year.
In addition, the government will spend more than Bt1 trillion over the next three years to increase the country's long-term economic competitiveness.
CEOs and senior executives of major US firms, including Coca-Cola, Chevron, Ford, Fedex, Citibank and United Airlines, were among the participants at last night's teleconference.
Citing the red shirts' planned March 12-14 anti-government protests, Amcham president Joe Geagea said political instability had become one of the biggest concerns for foreign investors here.
Besides the anti-government rallies, the Map Ta Phut issue is another major concern for foreign investors, he said.
Geagea said both issues had sent the wrong signal to potential new investors.
He said some foreign investors had turned to Singapore, for example, as an alternative to Thailand.
The island-state's transparent and stable political system is proving more and and more attractive.
Given the protracted political unrest, both the government and opposition politicians should not have underestimated the effect of instability on the economy and foreign investment, he said.
"I hope there will be no violence from March 12-14 and that Thailand can restore peace and stability," said Geagea.
He said if the anti-government rallies remained non-violent and peaceful, then the economy would not suffer any serious impacts.
The Amcham chief also expressed confidence the government would successfully use its strengths to control the security situation.
Meanwhile, Abhisit yesterday held a meeting with his deputy prime minister for economic affairs, economic ministers and economic agencies.
He sounded out their readiness to cope with the red-shirt demonstrations in and around the capital.
Korn said measures were discussed to handle the chaos, particularly to address public fears that led to cash withdrawals and food stock-up. He assured everyone that withdrawals would not be disrupted but that any violence would hurt confidence.
Commercial banks are allowed to use their own judgement in closing branches in risky areas. He insisted no decision had been made to close the stock exchange on Friday.
Bank of Thailand (BOT) Deputy Governor Krirk Vanikkul said banks would be allowed to close branches without having to take the central bank's consent.
In normal situations, the closure of a branch or postponement of an ATM cash refill would require BOT approval.
