Thai central bank sees economy affected by industrial estate case

The suspension of investment projects in the Map Ta Phut Industrial Estate will definitely affect the Thai economy next year, but how extensively it will impact depends on the government’s competence in establishing clear-cut investment rules, according to the Bank of Thailand (BoT).

“The government must have clarity on investment regulations and timing for addressing the problem because the private sector wants a clear policy so that they can establish the investment plan,” national news agency TNA quoted BoT Governor Tarisa Watanagase as saying.

She said the Monetary Policy Committee would revise its estimate of impacts from the investment suspensions on the Thai economy at its January 13 meeting since the situation had changed.

Earlier, the MPC estimated the Map Ta Phut case would reduce Thailand’s economic growth by 0.5 percent next year.

Speaking of economic conditions in 2010, the BoT chief said that the budget disbursements under the 2nd phase economic stimulus program should be monitored as to whether it meets the targeted amount.

Should the disbursements miss the mark, it would impact the short- and long-term economic stimulus packages and the government’s tax collection in the future.

She predicted loans extended by commercial banks will expand next year if the private sector would pursue the government’s plan to invest in various projects.

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