BOT:ISA won’t affect investors' confidence

BANGKOK, July 31 (TNA) - The Bank of Thailand (BOT) is optimistic that the temporary imposition of the Internal Security Act (ISA) in specific areas in Bangkok from August 1-10, approved by the Thai Cabinet on Wednesday to cope with possible political rallies in the capital next week, should not affect international investors' confidence in Thailand. Methee Supapong, a BOT senior director, told reporters that the limited impact is seen because the ISA will be enforced in only three districts located near the Thai Parliament, including Dusit, Prom Prap Sattru Phai and Phra Nakhon. Methee acknowledged that the ISA could pose slight negative impact on the Thai tourism but the affected businesses should recover soon. The Thai Cabinet has decided to impose the ISA in the specific areas in the capital, as several civic groups opposing a draft amnesty bill proposed by the ruling Puea Thai Party have planned their political rallies when the draft bill is deliberated in the House on August 7. Meanwhile, BOT Governor Prasarn Trairatvorakul reiterated that the central bank has revised down its national economic growth projection this year to 4.2 per cent, as Thai exports have been affected by a slow global economic recovery, along with inactive domestic spending. The BOT chief acknowledged that the Thai economy is also encountering several uncertainties, but the impacts could be reduced if sufficient measures were mapped out. In order to enable the export-oriented Thai economy to sustain growth in long-term, the BOT governor suggested that innovative products and services have to be launched and four significant policies have to be adopted, including a cut in logistics costs, further human resources development in health and education, as well as increase in research and development projects and in labour efficiency. (TNA)