One of the major concerns of the foreign investors eyeing Thailand is the nation’s pursuit of energy independence and sustainable energy as the backbone of the future business roadmap. The subsequent creation of a business-friendly environment is expected to spearhead long-term growth.
This optimism is, however, marred by the prevailing political uncertainty since the general elections on May 14. The political scene took an unexpected turn when the front-runner party, Move Forward, didn’t manage to form a government. This political roadblock occurred after its prime minister candidate, Pita Limjaroenrat, failed to secure enough votes in the parliamentary polls. Consequently, the prospective foreign investors had to put their expansion plans on hold.
The political deadlock was further complicated by pleas made to the Constitutional Court, which might influence the parliamentary voting.
The CEO of data centre service provider, Etix Everywhere, Louis Blanchot, shared his views regarding the ongoing situation. The company, which operates in Thailand through its subsidiary ETIX Bangkok #1 Data Centre, is closely observing developments in Thailand’s political sphere. Blanchot affirmed their belief in the democratic system’s dynamic nature and their commitment to support the democratic process.
Blanchot further mentioned that the company’s concerns transcend mere profit margins, highlighting their concern for the Thai citizens’ well-being. They truly believe that a flourishing democratic society is fundamental for the nation’s progress to enhance prosperity.
Despite the political odds, Etix Everywhere, as a responsible corporate entity, has pledged to contribute towards the digital growth in Thailand. The company is confident that the recent elections will pave the way for political stability, which is essential for the well-being of Thai citizens and the enhancement of business entities and investors.
He put forth their company’s perspective, saying that they have wholeheartedly invested over 350 million baht in the Thai economy this year, under the Thai government’s policy supporting digital economy investment.
Among the numerous policies, one that stood out and impressed the company is the government’s efforts to back businesses involved in trading renewable energy and encouraging investments in private sector clean energy. The subsequent expected economic transformation is touted to be sustainable. According to Blanchot, these measures, combined with their mitigating policies, have helped reduce carbon emissions by over 35% so far.
Sharing similar concerns, the Federation of Thai Industries (FTI) president, Kriengkrai Thiennukul, also affirmed that the corporate sector is keeping a close eye on the political changes. He also pointed out that while the existing investors in Thailand might adopt a wait-and-watch approach given their familiarity with the local social-political landscape, the newer entrants may be extra cautious.
This caution is particularly resonant among the “New S-Curve group” investors, who are a part of the high-tech industry, from the US and Europe. They are expected to tread carefully amid heightened competition in the region.
Kriengkrai desired for a speedy conclusion to the prime minister elections, leading to government formation within the set timeline, a factor he considers essential for the business sector. He expressed concerns about the proposed 10-months period for the process suggested by a political party, questioning its feasibility and the potential impact on the nation.
With the Thai economy already in a delicate state, intensified by global economic risks, Kriengkrai disclosed concerns over delays in forming the government, thereby raising uncertainty levels. He suggested foreign investors might gauge the situation in the ensuing months to weigh the nation’s stability against their investment plans.
Be First to Comment