Uncertainty hurting growth: Thai minister

The Straits Times, April 17, 2007


BANGKOK - POLITICAL uncertainty in post-coup Thailand is hurting the economy and will undercut efforts to kick-start growth, the Finance Minister said in an interview published yesterday.

Mr Chalongphob Sussangkarn, appointed last month after his predecessor Pridiyathorn Devakula resigned suddenly, told the Financial Times that Thailand had experienced 'a great deal of chaos' since the coup last September.

'We have to do what we can to stimulate the economy. But with all the political uncertainty, it's not going to lead to a big spurt in economic growth,' he told the newspaper.

The economy has suffered a number of blows since the military overthrew former premier Thaksin Shinawatra, most notably when new capital-control measures saw the stock market plummet 15 per cent last December.

The new finance team also shook investors when it said it was tightening foreign-ownership laws. And bombs in Bangkok on Dec 31 and recent street protests against the junta have added to the uncertainty.

The junta has promised elections by the end of the year, but it is still not clear who will run in these polls or if Mr Thaksin will be allowed to return to the country for them.

Also, the military-installed government's initial decision to terminate populist schemes created by Mr Thaksin had created hardship for rural Thais, Mr Chalongphob admitted.

'Monies that should be going to the grassroots were not going there, and therefore they have been severely affected,' he said.

AGENCE FRANCE-PRESSE, FINANCIAL TIMES