Foreign investment prospects are expected to remain good this year, although business people have delayed their investments pending the establishment of a new government, according to the Industrial Estate Authority of Thailand (IEAT) and key business leaders.
The IEAT believes foreign investors will understand the new chapter of Thai politics, especially a shift to the Move Forward Party-led coalition government, said IEAT governor Veeris Ammarapala said.
"Investors believe investment policies in Thailand will not change," he told a forum on industry on Monday.
They want the new government to be set up as soon as possible as this is crucial for business confidence, said Mr Veeris.
According to the IEAT, investment in Thailand is expected to increase in the second half, partly driven by the decision of foreign investors to invest in Asean to avoid the impact of geopolitical conflicts, such as the Russia-Ukraine war and China-Taiwan tension.
The trade war between the US and China has also caused companies to seek new investment destinations.
The IEAT believes plans to increase the daily minimum wage, proposed by the political party which won the election, would not affect investment plans because the wage rise is required to go through discussions between representatives from the government, employers and employees.
Harald Link, president of B.Grimm Power Plc (BGRIM), said the wage increase policy would not affect BGRIM's business because the firm currently pays its employees above the minimum wage.
He suggested the government focus more on the improvement and development of labour skills to better serve targeted industries in the country.
Currently, many Thai and foreign investors have delayed their investment plans, especially those in the power sector, as they want to see clear policies from the new administration.
They want to know whether the state plan to buy renewable power from power companies will continue, said Mr Link.