ID :
151771
Tue, 11/30/2010 - 09:55
Auther :
Shortlink :
http://m.oananews.org//node/151771
The shortlink copeid
Political tension, new election not considered risk factors for Thai economy
BANGKOK, Nov 30 – Thailand's political difficulties and the upcoming general election are not considered risk factors to the country’s economy next year, according to a top commercial banker.
KASIKORNBANK PCL (KBank) president and CEO Banthoon Lamsam said although it is expected the new general election will be held in 2011, it would not negatively affect the economy.
He said the political party dissolution occurred normally in Thailand, so it is believed that such action would discontinue the present government's policy implementation.
On a possible political movement following the Constitutional Court’s dismissal of the dissolution case involving the Democrat Party, he said a political rally, if persistent, might affect investment somewhat.
However, he believed foreign investors would finally return to invest in Thailand where labor costs are low and the basic infrastructure is sound.
Mr Bantoon projected loans extended by the bank would grow 7-9 per cent next year in tandem with the expected economic growth of 4 per cent.
He also predicted the baht will appreciate further due to continued foreign capital inflows into the region.
The business community must adjust to the changing environment, he said, particularly the movement of the baht and interest rates.
He said the business community understands the baht appreciation.
Regarding the interest rate hike, he added it would move based on the inflation rate. It is the duty of the Bank of Thailand’s Monetary Policy Committee to supervise it to ensure it moves properly. (MCOT online news)
KASIKORNBANK PCL (KBank) president and CEO Banthoon Lamsam said although it is expected the new general election will be held in 2011, it would not negatively affect the economy.
He said the political party dissolution occurred normally in Thailand, so it is believed that such action would discontinue the present government's policy implementation.
On a possible political movement following the Constitutional Court’s dismissal of the dissolution case involving the Democrat Party, he said a political rally, if persistent, might affect investment somewhat.
However, he believed foreign investors would finally return to invest in Thailand where labor costs are low and the basic infrastructure is sound.
Mr Bantoon projected loans extended by the bank would grow 7-9 per cent next year in tandem with the expected economic growth of 4 per cent.
He also predicted the baht will appreciate further due to continued foreign capital inflows into the region.
The business community must adjust to the changing environment, he said, particularly the movement of the baht and interest rates.
He said the business community understands the baht appreciation.
Regarding the interest rate hike, he added it would move based on the inflation rate. It is the duty of the Bank of Thailand’s Monetary Policy Committee to supervise it to ensure it moves properly. (MCOT online news)
