Investors hail clarity on poll

Investors hail clarity on poll

Confidence rallies as date announced

It was confidence across the board from the business sector as the Election Commission announced a poll date, calling it 'a positive factor for investment'.
It was confidence across the board from the business sector as the Election Commission announced a poll date, calling it 'a positive factor for investment'.

The private sector hailed Wednesday's announcement of the nation's first general election since 2014, saying clarity on the long-awaited poll date will bolster investor confidence.

Thai shares rallied 1.2% to their highest level since mid-December before ending the day with a nearly 1% gain in response to the firm election date of March 24.

Kalin Sarasin, chairman of the Thai Chamber of Commerce, said an election will definitely be held after a royal decree endorsing the general election was issued.

"It's good news that all Thais can cast a ballot, while investors have clarity on Thailand's political direction and feel more confident about their investment here," he said.

Mr Kalin called on the next government to continue economic policies initiated by the incumbent government, including the Eastern Economic Corridor, infrastructure megaprojects, the digital economy, the high-speed rail project linking three key airports, and programmes to narrow income disparity and income distribution in provincial areas.

He said he is praying for a peaceful and stable political situation once the election winds up.

Deputy Prime Minister Somkid Jatusripitak said that with the election date set, the government will continue to work as usual to move ahead with planned development projects and initiatives.

Mr Somkid said the roadshow to Japan between Jan 30 and Feb 2 will stay unchanged in order to attract Japanese investors, especially in medical devices and electronics.

Somchint Pilouk, governor of the Industrial Estate Authority of Thailand, said the general election will be a positive factor for future investment flows from both the public and private sectors, as the government itself has high expectations to promote and attract investment projects and drive forward the economy.

"It will build up investor confidence, and the election will make investors speed up their decisions to invest and expand their operations in the country," Ms Somchint said.

Supant Mongkolsuthree, chairman of the Federation of Thai Industries, called the announcement a clear sign from the government that it remains committed to its roadmap announced earlier.

"Of course, investor confidence will increase from the exact time frame for the general election," Mr Supant said. "The country's current fundamentals now attract investment flows, but the democracy roadmap with the election will strengthen fundamentals and allay investors' worries."

Meanwhile, many state megaprojects will attract more companies to join with the government, he said.

Mr Supant said the date and time for the general election are also within 150 days, so this schedule will not impact overall economic sentiment in 2019.

Siwat Chawareewong, president of the Digital Advertising Association, said the news will bolster businesses' and investors' confidence. Advertisers can better plan media spending.

Political parties have already increased digital spending in the past 4-5 months to reach voters, and out-of-home media spending will rise during the election period by 1 billion baht, marking 5 billion baht of overall out-of-home media in 2019.

Siriwat Vongjarukorn, president of IT service firm MFEC Plc, said the announcement is a major fillip to confidence, particularly regarding corporate IT spending and venture capital for startups.

The royal decree has restored investor confidence, said Lavaron Sangsnit, director-general of the Fiscal Policy Office.

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