Pheu Thai: Protest hurting economy

The anti-government rally has severely affected business in Bangkok, particularly the capital markets, Pichai Naripthaphan, a former energy minister and Pheu Thai economic team member, said on Tuesday.

Mr Pichai was responding to comments by Pramon Sutheewong, chairman of the business-based Anti-corruption Organisation of Thailand, who said after a meeting with the Democrats that he supported the Bangkok shutdown planned by the People’s Democratic Reform Committee (PDRC). He said it would have not much impact on the business sector.

Since the PDRC protest began, the Stock Exchange of Thailand main index had gone down more than 200 points, reducing market capitalisation by more than two trillion baht, said Mr Pichai, a member of the Pheu Thai economic team.

On the first day of the capital shutdown declaration, the SET index dropped more than 67 points, reducing the daily trade value by more than 58 billion baht, he said.

If the capital flow was really shut down, the stock market would sink. It would affect the tourism sector because foreign tourists would cancel plans to visit Thailand. Moreover, confidence in Thailand would drop to its lowest level, causing the country an opportunity lost. The shutdown would cause severe economic damage to the country, Mr Pichai predicted.

At least 60 international flights into Bangkok had been cancelled on Monday. Some foreign investors had already moved their investment bases from Thailand to neighbouring countries, he added.

Share your thoughts

Discussion 1 : 08/01/2014 at 12:21 AM
I for one appreciate the fall of the Thai baht. More bang for my buck.
Discussion 2 : 07/01/2014 at 07:14 PM
You can't put a number on freedom... and the PTP claim goes to show their loyalties lie in their own bank accounts.
Discussion 3 : 07/01/2014 at 07:10 PM
Why do you think, Thailand is on top of the coup ranking? Yes, it is all about corruption. Who is in power is getting the bigger piece of it. Thailand free of corruption it is like the Mount Everest free of Snow. Maybe in 100 or 200 years Well I wont see that
Discussion 4 : 07/01/2014 at 07:04 PM
This is simply not true. Foreign investors have to look for many topics, when they plan their investment. And there are other country close by, which are more stable. I know one very huge player, who moved their Asian Headquarter form Thailand to Singapore not because of cheep labor. Many are going to Malaysia, also not because of cheep labor. There are some moving to Cambodia and Vietnam, because of cheep labor. More important are the investors who moving new to Asia, but will not come to Thailand, because of all the nice things. Flooding, Demonstration, Ownership and many other reasons.
Discussion 5 : 07/01/2014 at 05:38 PM
bkk-farang, sorry I cannot see corruption going away no matter who is in power. Basically, now it's about choosing a lesser evil to be government. I have no doubt there are decent politicians in many parties, if not all. But unfortunately, the corruption that matters to people most is the corruption that happens on the low level, say your police, administration and people in general. It should be a bottom up approach, reduce corruption at the low level so that the culture of corruption becomes smaller. Then work anti-corruption upwards. What's the point of having cleaner a government if corruption is still around your daily life?
Discussion 6 : 07/01/2014 at 05:36 PM
"Some foreign investors had already moved their investment bases from Thailand to neighboring countries, he added." Didn't they say there is a record number of investors just couple months ago? I love how they like to twist the facts around, people who move are taking advantage of lower labor costs elsewhere, not because of protests.
Discussion 7 : 07/01/2014 at 05:22 PM
The economy is sinking under the Shinawatras. Time to step down!!!
Discussion 8 : 07/01/2014 at 05:20 PM
The peaceful protesters are adversely affecting the economy, but the violence and killing by the red, and black shirts did not, is that correct.
Discussion 9 : 07/01/2014 at 05:14 PM
Smart people, this Pheu Thai lot......yes, the protests are hurting the economy. Why are there protests? Because Pheu Thai and it's support of Thaksinism is hurting the country to a greater extent....end the Thaksin influence, clean up politics, the police etc and lets see Thailand develop to its true potential.
Discussion 10 : 07/01/2014 at 04:55 PM
Sure the protest will hurt the economy – but how much? Will it hurt the economy more than the rice-scam? Will it hurt the economy more than the planned 2.2 trillion baht loan? Imagine if after the protest the country would be free of corrupt Thaksin and his henchmen. How much would that actually help the economy? We can all live with a few weeks of pain if the main cancer will be removed.
Discussion 11 : 07/01/2014 at 04:54 PM
Most stocks traded on the exchange have already made their contribution to the issuing company's capitalization, now they are simply collectors items for folks trying to make money buying/reselling them or hoping for dividend returns. The only people being hurt are investors trying to sell right now, buyers are having a field day. Of course the paper rich elite are frowning, but whats it matter until they decide to cash their stocks in.
Discussion 12 : 07/01/2014 at 04:01 PM
It seems that the Boss is willing to let the economy suffer so that he can win the next elections without any reforms. Could it possibly be that he is putting his own personal interests before those of the country, which he professes to love? This could not be possible!

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