Expect assistance from the government? Not likely, especially without a permanent one.

They may envy their counterparts in other countries who do enjoy government assistance. But take Singapore, where they not only envy the island-state's investors, but also fear for small Thai investors at home.

Deutsche Presse-Agentur reported Singapore's trade promotion agency as saying yesterday that it would set up a loan fund to support overseas expansion by Singaporean companies.

International Enterprise Singapore said in a statement that the fund, worth 500 million Singaporean dollars (about Bt12 billion), would begin operating about the middle of next month.

The agency said asset-backed loans and other forms of secured lending would be extended to companies "with confirmed projects or sales overseas".

Loans will be limited to $15 million per borrower, with the agency shouldering 70 per cent of the credit risk. Notably, that amount is enough to take over a small or medium-sized enterprise in Thailand.

Indeed, the Thaksin government has done much to clear the way for Thai businesses' foreign expansion. Such as in Kenya, where caretaker Prime Minister Thaksin Shinawatra suggested a Thai hotel as a potential investor.

But right now, all we have is a caretaker administration. While there is no government to steer expansion abroad, we also have none to shield our profitable small businesses from takeovers.

A profitable hue

L'Oreal executives yesterday did not bother to hide their surprise at their firm's first-half sales figures.

That company's target was achieved, although sales contracted at many others, what with consumers tightening their belts from fear of economic uncertainties emanating from the political vacuum.

But at L'Oreal, it seems that even though consumers' purchasing power may be declining, people still need products to nurture their skin and colour their hair.

Indeed, hair-colouring products must be in high demand right now, as economic conditions won't get better overnight, even though some political deadlocks have been resolved.

As people ponder how to save money for the future and on fuel bills to pay for other necessary items, the added stress makes their hair grey faster than usual.

Certainly, with so many other companies, especially manufacturers, suffering from higher energy costs and the political turmoil, L'Oreal should be one of the beneficiaries.

achara_d@nationgroup.com