THAILAND: COUNTRY MOVES TO REBUILD INVESTOR CONFIDENCE IN WAKE OF FLOODS

Photo caption: Ann? Schlagel (Country Director), Kittiratt Na-Ranong (Deputy Prime Minister and Minister of Finance) and Alex Gordy (Editorial Manager) Repairing the damage caused by last year’s floods and reassuring investors that the country can prevent similar disasters remain Thailand’s priorities, according to its Deputy Prime Minister and Minister of Finance Kittiratt Na-Ranong. Na-Ranong told the global publishing, research and consultancy firm Oxford Business Group (OBG) that repair work after the floods, estimated at BT1.4trn ($44.66bn), had inevitably required a major increase in spending and some changes to economic policy. He was confident however that plans to be rolled out over the next two years by the Strategic Committee for Water Resource Management (SCWRM), which was set up to tackle the issue of water management, would be key in rebuilding investor confidence. “Development of a water management system as well as flood rehabilitation are the main areas of focus for the SCWRM,” he said. “Implementation of certain policies, such as the increase in minimum wage, has been delayed slightly, from January to April 2012, to give the business sector room to recuperate from the floods. Nevertheless, I think that the extra spending from the water resource management plan should have a positive stimulus effect on economic growth.” The full interview with Na-Ranong will appear in The Report: Thailand 2012, the Group’s forthcoming guide on the country’s economic activity and investment opportunities which is produced in partnership with Thailand Board of Investment, Thanachart Securities, Tilleke & Gibbins and BDO Advisory. The third-anniversary report will include a detailed, sector-by-sector guide for foreign investors, alongside a wide range of interviews with the most prominent political, economic and business leaders. Na-Ranong said the regional economic integration of ASEAN countries, earmarked for 2015, would provide investors with significant benefits, including access to a larger market and a more coordinated production base. He added that Thailand was already building on its strengths, which included its strategic location and reputation as a regional industrial hub, in preparation for full ASEAN integration. “Having a more integrated regional economy would translate into more goods, services and people flowing into the region and Thailand,” he said. “To prepare for this, the government is planning to upgrade its logistics infrastructure to fully benefit from ASEAN integration.” OBG’s Regional Editor Paulius Kuncinas agreed that the opening of ASEAN economic borders in 2015 should provide Thailand with a golden opportunity to expand its regional footprint. “Even though some sectors like banking and logistics may be impacted negatively from increased competition we think that overall the ASEAN integration process will result in greater efficiency and productivity,” he said. Kuncinas added that while The Report: Thailand 2012 would consider the lessons to be learned from the floods in key areas such as water management, insurance, construction and logistics, it would also explore the resilience shown by businesses during challenging times. “Political risk aside, the private sector has performed remarkably well in a rather difficult environment and continues to enjoy competitive advantages within the growing ASEAN region, particularly in the agribusiness, electronics and automotive sectors,” he said. “Whilst the growth momentum suffered setbacks last year, we still believe Thailand could be on the path to becoming one of the most dynamic economies in ASEAN.” The Report: Thailand 2012 will mark the culmination of more than six months of on-the-ground research by a team of analysts from the Group. It will provide information on opportunities for foreign direct investment into the country’s economy and will act as a guide to the many facets of the country including its macroeconomics, infrastructure, banking and sectoral developments. The forthcoming publication will be available in print form or online. For more information please contact: Spark Communications Co.,Ltd . Varadee Vasavananda Tel. +66(0)2-653-2717-9 Fax. +66(0)2-653-2720/25 Email: [email protected] Oxford Business Group, Dubai, PO Box 502 659, Dubai, UAE Kate Taylor, PR Manager Phone: +971 44 264 642 E-mail: [email protected] -NT- Click for photo release at www.thaipr.net

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