Missed opportunities due to delay in government formation likely

Foreign business figures are closely watching the establishment of a new government three months on from the election and want the incoming government to push for attractive investment policies and create an investment-friendly environment. The ongoing delay in government formation and establishment is crucial to foreign business decisions and Thai economic prospects.

Stanley Kang, former president of the Joint Foreign Chambers of Commerce in Thailand, said that despite continuous foreign investment into Thailand at present, foreign business executives want to see a quick government formation.

Furthermore, foreign companies planning to invest in Thailand have initiated discussions with the caretaker government, but several limitations exist, making the timely establishment of a new government even more essential. Kang emphasised that this timely establishment will not only increase investor confidence, but also clarify investment policies and economic strategies.

While further delays might not prompt a shift in production bases, it may well affect new investment decisions of existing investors. New investors will continue to wait and observe the situation, as they are hesitant to invest without knowing whom to negotiate with, potentially causing Thailand to miss investment opportunities. This, in turn, could impact Thailand's ability to compete for and attract investments, as other countries also seek to attract foreign businesses.

Currently, foreign investors are entering the electric vehicle (EV) industry in Thailand. This expansion of the EV sector may overshadow industries like electronics, semiconductors, healthcare, tourism, services, hotels, and travel, he said.

Kang confirmed that foreign investors are interested in Thailand, recognising its strengths such as its strategic location at the heart of Southeast Asia and better infrastructure readiness than neighbouring countries.