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Foreign investors stay in

BUSINESS: More than 400 foreign investors in Thailand questioned in an investor confidence survey by the Board of Investment (BoI) said they had no plans to withdraw investment from the country.

Saturday 10 September 2011, 08:18AM


The survey was conducted by the BoI from February to June 2011 among 404 companies, including both firms which received BoI privileges and those that did not receive them, said BoI Secretary-General Atchaka Sibunruang.

However, the investment value of businesses granted BoI incentives this year will jump from B400 billion to B500 billion provided that foreign entrepreneurs view the investment environment as remaining positive.

According to the survey, 49.8 per cent of the investors surveyed plan to maintain the status quo, while 46.8 per cent aimed to expand their businesses.

However, 3.5 per cent of the businesses, such as textiles, jewellery and leather wear, which face labour supply problems and raw material supplies will downsize their investment.

These groups of businesses hire migrant workers and are likely to encounter labour shortages and will gradually relocate to other countries, particularly Vietnam, China and India, where labour costs are cheaper.

The survey has not yet factored in the Thai government’s policy to raise the daily minimum wage to B300. In the overall picture, Thailand’s wage structure can still compete with other countries in terms of skilled labour compensation.

Moreover, the banking system and access to financial sources as well as land use are better than those in many countries, except for the communication and logistics systems which still lag behind Malaysia as the Malaysian government considers it a higher priority. – MCOT

 

 

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