Development in the Eastern Economic Corridor (EEC) is facing a snag, as a new law governing economic and investment activities and new cities in related areas will be delayed by about three months, says Industry Minister Uttama Savanayana.
He said implementation of the law is still set for this year, although the delay has raised concerns among investors about development of the EEC, which could lead them to hold off on investing.
Mr Uttama said the implementation of the EEC Act, which is being deliberated by the Council of State and was forecast to be ready in June, has been delayed until October. The act will be rewritten due to several issues that have proven cause for concern.
He said the Council of State wants the government to double check that none of the articles contradict those in other chapters of the legislation, nullifying the law, which could damage the country's reputation and put a damper on investor confidence.
"The government has no concerns over the delay of the EEC law and we are confident that investors will understand the situation because the implementation of the law is still occurring within the time frame previously set," said Mr Uttama, adding that the government will continue to explain the situation to investors so that there are no misconceptions over the delay.
Meanwhile, the EEC law will be sent back to the cabinet, who will then pass it on to the related government agencies to be revised, after which it will be resubmitted to the Council of State for approval.
At the same time, the government will conduct a public hearing to hear opinions from local residents and investors. Information garnered from that hearing, along with the revised bill, will later to sent to the National Legislative Assembly for approval, potentially by October, he said.
Mr Uttama said the government will continue to hold more roadshows abroad in order to create awareness of the EEC project and attract more investment.
But the delay of the EEC law has raised concerns among foreign investors, who may hold off on investing in the corridor until the law is finalised.
Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand, said the EEC law is a much-awaited key factor for foreigners when it comes to making investment decisions, as many want to see the regulations and incentives before moving forward.
Thai investors, by contrast, appear to be less concerned by the delay.
Kriengkrai Thiennukul, vice chairman of the Federation of Thai Industry, said it would be prudent for the law to be implemented without flaws, and thus it was better for the government to spend more time rechecking it before implementation.