Japanese businesses expect the Thai economy will improve in the second half of this year despite a lacklustre first half, says the Japanese Chamber of Commerce, Bangkok (JCCB).
These businesses experienced a slight drop in business sentiment during the first half due largely to falling domestic demand, said Masayasu Hosumi, chairman of the JCCB's economic research committee.
But he said the government's economic stimulus programme should help to support the economy in the second half.
"The measures that are due to start will have a good impact on the economy in the second half and improve infrastructure investment as well as help the automobile industry to recover," said Mr Hosumi, who is also president of the Japan External Trade Organization's Bangkok office and that agency's chief representative to Asean.
He admitted the Federation of Thai Industries' recent cut in its domestic car sales projection would have a negative effect in general but said car exports were still likely to increase in the second half.
In a survey of 1,629 JCCB members conducted from May 25 to June 15, some 67% of respondents wanted Thailand to maintain its political stability and improve customs procedures as well as develop infrastructure, particularly in Greater Bangkok.
The survey showed the most challenging issue was intense domestic competition.
However, the government's promotion of investment in the planned special economic zones (SEZs) received a lacklustre response from JCCB members.
Only 4% expressed interest in the SEZs, while 56% said they were not interested at all and 29% wanted more details before deciding.
Mr Hosumi speculated the lack of interest could be because there was already a large amount of Japanese investment in the country, saying companies might not have any plans for further expansion in the SEZs.
When asked what would attract them to invest in SEZs, 32% said greater Board of Investment incentives, while 29% named better logistics infrastructure between the SEZs, which are all in border areas, and Laem Chabang deep-sea port.
Respondents also said they needed more information about the exact locations and types of industrial estates to be built in each SEZ as well as about available labour supply.
Among those reporting interest in the SEZs, 59% liked Kanchanaburi, 43% Sa Kaeo and 25% Mukdahan.