Business reaction: Minimal economic impact 'if no violence'

[elef]

Business reaction: Minimal economic impact 'if no violence'

 

Benefits seen from end to divisiveness, calls for interim govt to be named

The business sector anticipates shortterm negative impact from the coup d'etat, but the economic direction should be clearer with diminishing divisiveness in society and that should be in favour of local and for�eign investors.

 

Charlotte Dhonavanik, first sen�ior executive vice president at the Bank of Ayudhya, said that from the Administrative Reform Council's (ARC) first announcement, things seem to be wrapped up in a quick manner.

 

"There should be no violence, unlike in previ�ous incidents. Once it's clear, this should not affect foreigninvestor confi�dence," she said.

 

A banker who asked not to be named wanted the Administrative Reform Council to make clear who was going to run key ministries espe�cially the economic ones.

 

"In previous coups, the list of economic ministers were announced. If the reform group could come up with the list, this should restore confidence in the economic sector," he said.

 

Dusit Nontanakorn, secretarygeneral of the Thai Chamber of Commerce, said last night it was too soon to comment on this incident, but the chamber was closely mon�itoring the situation.

 

"I still hope other countries would understand what happens here and the situation should return to normal in the short term," he said.

 

A stock analyst expected retail local investors to unload their shares today on panic selling, but it was unlikely foreign investors who had bought into Thai stocks recent�ly would sell.

 

"Naturally, a coup is not good for the economic environment. But now it's clear that the ARC has no intention to be the absolute power controller and it will push for the election. This should calm investors, aside from the fact that with the emergence of the reformist group, the economy is headed towards a clearer path," the analyst noted.

 

Somchai Phakapaswiwat, a political science lecturer at Thammasat University, noted the coup would return peace to society after a year of divisiveness.

 

"We should expect the for�mation of an interim government, which should be in power for about a year.

 

"Once the election is held, the economy should be back to normal," he noted.

 

A lawyer who asked not to be named added that the coup would not have a further negative impact on the economy, as the atmosphere has been unfavourable for a year. Foreign investors have delayed their investment here, thus, this should have no impact, he said.

 

"This could not be totally good to the economy, but now that the economic path is clearer, it is better to have the government which is rotten by conflicts," he noted.Kanokwan Wongwatanasin, CEO of ISSP Internet Solution and Service Provider, agreed the coup was unlikely to hurt business sen�timent now that the economy was gearing towards a clearer path.

 

"This is okay as long as there is no violence. The quicker, the better. Certainly, business will move up as usual," she said.

 

Business Reporters

 

The Nation

[exileexpat]

Ya sure. We will see in the morning at 10am.. I bet you it will drop to 660 soon.

[cavanami]

The Baht remained strong overnight. Found it at 37.695 this morning...wish it would get a little weaker