World Bank sees investment in Thailand up 10% in 2008

BANGKOK, Dec 12 (TNA) - The World Bank has forecast that foreign investors are preparing to commit about Bt280 billion in Thailand in 2008 as they gain higher confidence in the kingdom following the December 23 general election.

An economist at the World Bank here said private investment is projected to grow 10 per cent in 2008 above the stalled investment this year as both local and international confidence is expected to improve following the upcoming general election.

Kirida Bhaopichitr, World Bank economist for Thailand, said the bank projection for the Thai economy is quite different than this year's 4.3 per cent, the lowest in the past five years and the lowest in the region, as the country's local consumption and investment had slowed considerably.

Next year's investment of about Bt280 billion is from projects which received promotional privileges from the state-run Board of Investment this year, the economist said.

A transparent policy on the part of the new government to be formed after the election -- especially regarding the Foreign Business Law and the 30 per cent foreign capital reserve requirement -- will help boost foreign investor confidence, Ms. Kirida said.

Touching on populist programs which would need a large amount of money to spend and being introduced by several political parties contesting the general election, she said the new, elected government must think hard where the money would come from and it must not create financial problems for future.

TNA

Quote:The World Bank has forecast that foreign investors are preparing to commit about Bt280 billion in Thailand in 2008 as they gain higher confidence in the kingdom following the December 23 general election

That's assuming that the general election goes ahead as planned, the PPP is not dissolved, the results are not rigged and there is no widespread vote buying