Business leaders have expressed concern that foreign companies may put their investment decisions on hold as the emergency decree invoked two days ago further dampens the investment climate in Thailand.
Simon Landy, chairman of the British Chamber of Commerce, said imposing a state of emergency makes a very big impact on foreign direct investment (FDI).
"[The decree] is almost like the government confirming the problems. Whereas before they [investors] were waiting to make decisions, now they are more likely to put decisions on hold for a period of time," he said.
Meanwhile, neighbouring countries have some of the same benefits Thailand has offered in economic terms without the political problems, said Mr Landy.
Last month, the Joint Foreign Chambers of Commerce in Thailand (JFCCT) comprising 28 foreign chambers of commerce and business associations called for "long-term sustainable reforms", which include electoral reform as recommended by seven local major business groups.
But tension has escalated since the caretaker government invoked the emergency law in Greater Bangkok on Wednesday, as the measure authorises the military to help the police control the protest situation.
Karl-Heinz Heckhausen, president of the German-Thai Chamber of Commerce, said imposing the decree has allowed Malaysia and Indonesia to attract Thai-bound investment.
While FDI in Thailand dropped by 19% from 2012 to 525 billion baht last year, Vietnam saw a 54% year-on-year rise in the first 11 months of 2013, while Indonesia saw a full-year increase of 22.4%.
JFCCT vice-chairman Nandor von der Luehe said the current political situation in Thailand is not instilling confidence in investors, and the country is losing out on opportunities.
"Investors are putting money where they feel safe. It's important that we have stability and predictability without this political polarisation," he said.
"Elections are only one step in democracy. Reforms are still needed."
Vibeke Lyssand Leirvag Conselvan, president of the Thai-Norwegian Chamber of Commerce, said the state of emergency has negative effects on both tourism and business but likened the political unrest to "a few bumps in the road" that are a part of the process the country must go through.
"To be honest, the issue is not serious enough to issue an emergency decree," she said.
Meanwhile, many foreign investors such as JFCCT founder David Lyman remain optimistic, saying this is a phase of growing democracy in Thailand.
But he warned the decree gives draconian powers to government officials, which they can exercise with impunity if they want to.
Darren Buckley, president of the American Chamber of Commerce, said establishing a mature democracy is not a one-month endeavour.
"A transition to democracy is never easy. Even the US had to go through civil war and civil rights movement before," he said.
Yeap Swee Chuan, chairman of the Malaysian-Thai Chamber of Commerce, has been through many crises here.
The 28-year resident of Thailand visited the protest site on Phloenchit Road, where he found regular people and celebrities alike singing and dancing.
"I sent a video to [executives in] Japan, and they said to me, 'It's quite peaceful'," said Mr Yeap.