Investment outlook still positive, says BoI chief
Sathit Charnchaokul, secretary-general of the Board of Investment, insisted yesterday that investment sentiment remained positive, despite political uncertainties and other infrastructure problems that reportedly encouraged US-based Seagate Inc to set up a plant in a neighbouring country.
"Foreign companies are planning to invest in Thailand, but the investment figures may turn out to be lower than last year," he said. The BoI forecasted that it would approve Bt400 billion worth of projects this year, about half of its original target of Bt750 billion-Bt800 billion. His comment followed a report that Seagate Technology, a major investor in Thailand already, will build a Bt40-billion plant in Malaysia, citing shortages of hi-tech workers. Seagate's executives could not be reached for comment yesterday. Meanwhile, caretaker Deputy Prime Minister Somkid Jatusripitak said yesterday after his return from the US that investors there had expressed grave concerns about Thailand's political quagmire. "US investors have showed more interest in investing in Vietnam and Malaysia than Thailand due to the political disorder in the Kingdom," he said, adding that the best way to draw them back would be to set an election date to end all the chaos. The minister said that during the trip, he had tried convinced US executives that Thailand was a safe place to funnel foreign direct investment into, despite the current political problems. A BoI official, who asked for anonymity, said that Seagate was looking to expand its advanced electronics project in other countries in the region because Thailand still lacked skilled labour and a strong infrastructure. The official said Seagate, had conducted a feasibility study about building a plant to manufacture hard-disc-drive components in Thailand as well as Vietnam and China. The plant would supply its existing factories in Thailand. The official said the company found that Thailand was not suitable as a production base for components for its advanced electronics products. The new plant will require up to 200 rai of land with proximity to water sources and an airport. The plant would also require other facilities including power, a communications system, and up to 400 engineers and scientists with proficiency in English. The official said that the capability of Thailand's human resources was one of the country's weak points, as was the limitations of its infrastructure system. "The lack of skilled labour is a major problem preventing Seagate from investing more in the country. It's not the political turmoil or lack of investment incentives," the official said. Seagate has spent Bt11.6 billion on its hard-disc-drive operations in Thailand, which employ 4,064 people.
Watcharapong Thongrung, Petchanet Pratruangkrai The Nation
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