The bombing of the Erawan Shrine at the Ratchaprasong intersection in the heart of Bangkok is unlikely to hurt foreign investment, as most of the major foreign investors remain committed to Thailand, say foreign chambers of commerce.
Darren Buckley, president the American Chamber of Commerce in Thailand (AmCham), said the US remained one of Thailand’s major foreign investors.
Cumulative investment in Thailand by the US stands at US$50 billion while US companies employ 250,000 Thais, he said. Foreign direct investment was at $17 billion.
“We have a long history here. Monday’s incident was shocking and saddening. But it doesn’t mean that we will change our commitment,” Mr Buckley said.
He said AmCham was confident the government would pursue all means necessary to help improve the situation and the economy.
“The US will remain a major investor in Thailand, and Monday’s incident cannot deter us,” he added.
The Board of Investment (BoI) ranks the US as the second-largest investor country in Thailand.
In the first half of the year, the BoI awarded new promotions and privileges for investments worth 22.4 billion baht.
Topping the rankings is Japan, with investment valued at 87.8 billion baht in the first half.
The Japan External Trade Organization (Jetro) said the situation was sensitive and must be considered carefully.
One senior Jetro official said there was no change in the Japanese investment outlook following the bombing.
European investors voiced similar confidence about continuing with their plans.
Chaiyant Savanachai, executive director of the Thai-European Business Association, said the bombing was likely to have an immediate psychological effect on tourism but not on investment.
“No one in our group sees a change or delay in investment,” he said.
“They realise such an attack can happen anywhere.”
Mr Chaiyant said the psychological impact of the explosion would lead to a slowdown in spending by tourists, which would result in a cut in the production capacity of some industries.
However, the cabinet’s new economic team is expected to formulate measures to help boost spending that will help to bolster the economy, he said.
“I think the new cabinet will help to improve the investment atmosphere a lot, as most of the new economic ministers are well known among foreigners,” Mr Chaiyant added.
Supant Mongkolsuthee, chairman of the Federation of Thai Industries, said businesses saw no signs of change or delay in investments.
“We don’t see or expect any delay, as no one has said they would change their investment plan,” he said.
However, the domestic investment atmosphere as well as investors’ confidence would improve substantially if the culprit were arrested soon, Mr Supant added.