Persistent Map Ta Phut problem to affect GDP growth, says SCB economist

BANGKOK, Jan 26 (TNA) – The suspension of Thailand’s investment promotion projects in the Map Ta Phut Industrial Estate, if it continues, will affect investor confidence both locally and overseas and undermine the country’s gross domestic product (GDP) growth by some 0.3-0.4 per cent, according to a leading economist.

Siam Commercial Bank executive vice-president Sethaput Suthiwart-Narueput said the Map Ta Phut problem would have no impact on investment if it is addressed quickly, but if it continues unsolved for a long period, it could reduce GDP growth by 0.3-0.4 per cent, considered minimal.

He said the best way to cope with the Map Ta Phut problem is to create a proper and clear understanding, which could boost the investor confidence.

He allowed that Thailand is experiencing a period with a lack of foreign investor confidence.

If persistent, the resolved problem will discourage investment, but whether it could lead to a shift of investors’ production bases to other countries can not yet be clearly ascertained. Because of this, all parties concerned must attempt to find a solution to the problem in a proper and quick manner.

Regarding the direction of the baht in 2010, Dr. Sethaput said the SCB Economic Intelligence Center believed the currency would strengthen further and reach 32 to the US dollar.

Although the dollar is likely to appreciate, it would likely turn to weaken in the long run.

Commenting on the US government’s announcement of measures to control financial transactions by financial institutions, he said they are seen as not effective enough to solve the liquidity shortage of financial institutions in the US. (TNA)