Published: 17/04/2010
Newspaper section: Business
Bangkok Post
Writer: Nareerat Wiriyapong
Thailand must restore law and order to get the economy back on track and regain the confidence of international communities, says the Joint Foreign Chamber of Commerce in Thailand (JFCCT).Arrest warrants for red-shirt leaders have not been served, said the chamber's chairman, Nandor von der Luehe.
The government claims terrorists triggered last Saturday's violent clashes between the United Front for Democracy Against Dictatorship (UDD) and security forces, which injured more than 800 and caused 24 deaths, including a Japanese journalist.
''When political conflicts get out of hand, you need to restore law and order in the country. This is the most important thing,'' said Mr von der Luehe.
The UDD's withdrawal from Phan Fa to consolidate at the Ratchaprasong intersection has made it harder for businesses to resume normal operations.''The protests affect the country as whole but the latest incidents have put Bangkok in a dangerous situation,'' he added.
While tourism has been hit hardest by rising political tension, foreign direct investment (FDI), which normally requires long-term planning, has also been affected, said Mr von der Luehe.
''Clearly it is not a good year for investment,'' he said. ''With the Map Ta Phut (environmental issue) and so many negative things going on in Thailand, attracting new investment has become much more difficult.''
In his view, dissolving Parliament as the UDD demands would not end the deadlock.A 4% growth forecast for gross domestic product for 2010 now looks unrealistic, he added.Finance Minister Korn Chatikavanij said earlier this week that economic growth for the year could be cut by two percentage points after clashes dampened investors' confidence.
The ministry late last month had raised this year's economic growth forecast to as much as 5%, up from 4% in a previous estimate.
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