Saha Group, the country's leading consumer goods manufacturing conglomerate, has delayed investment in consumer products and shifted focus to services, hotels and condominium business this year, citing domestic political instability.
On Tuesday, Boonsithi Chokwatana, the group's chairman, said political uncertainty is the key concern weighing on the company's investment decisions.
"We've lost a huge opportunity to lure foreign investment to our country because the government has yet to be formed as it should," said the outspoken tycoon. "While a new government should be established soon, it is a bit too late."
Mr Boonsithi said the group was set to splurge on a hefty investment budget this year and next, 2-3 times the outlay from 2018, had a government been formed a few weeks after the general election.
The group will start investment in the second half this year, but at a slower pace than last year and will instead place emphasis on the service sector, he said.
"The service business will be our growth engine in 2019," said Vichai Kulsomphop, president of Saha Pathana Inter-Holding, a holding company under Saha Group.
According to the group's executives, Saha Group will invest in five areas in the second half of this year. They are industrial estates; hotels and condominiums; international schools; smart grid; and the distributor of Kumamon, the pot-bellied red-cheeked bear from Japan.
The group is teaming up with Sojitz Corporation, one of the 10 largest trading companies in Japan, to develop a new industrial estate next door to the group's own industrial estates in Kabin Buri, Prachin Buri province; Lamphun; and Mae Sot, Tak province. Sojitz Corporation will also draw Japanese investors who have already invested in Vietnam and Indonesia to co-invest in the new industrial estate.
The group will also join with Tokyo Construction to co-develop a 200-unit condominium and a 100-room four- or five-star hotel behind J Park community mall in Sri Racha, Chon Buri. The investments aim to cash in on the government's flagship Eastern Economic Corridor.
The two investment projects are in the design process and are expected to start construction in the second half of this year.
Mr Boonsithi said the company has also joined hands with a Thai partner to ask for the rights from King's College School Wimbledon, England to build King's College International School on 24 rai along Rama III Road this year.
Each of the projects requires an investment of at least 3 billion baht, he said.
Saha Group operates in consumer goods, fashion, textiles and services.
"Sales contribution to the services business is less than 10%," Mr Boonsithi said. "Under the global and domestic economic slowdown and political uncertainties, we're putting more focus into expanding services, which requires less investment than consumer products business."
He said the company also wants the new government to launch an aid package to help stimulate the spending power of low-income earners and control the baht's appreciation.
"We may reduce our investment, but in the longer term if the government has continuity and stability, we are ready to rev up our investment," he said.
The group has cut its sales growth forecast to 2-3% this year from 5-6% projected earlier.
On Tuesday the group announced the 23rd Saha Group Fair, to be held during June 27-30.