For decades, Thailand’s rotating-door politics was a sideshow for companies and investors. The recent eight-day seizure of Bangkok’s airports by anti-government protesters changed that.
“They could camp out in Government House for five years and nobody would really notice,” said Christopher Bruton, a director at Bangkok-based Dataconsult Ltd., which does market research for companies looking to invest in Southeast Asia. “But camp out in the airport and you get noticed pretty quickly.”
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“In the past when there was a problem, most of the protesters would directly go to the government,” said Pramon Sutivong, president of the Thai Chamber of Commerce, in an interview. “But this time we feel the protesters went too far by taking the country’s economy as a hostage to force what they are trying to do.”
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As long as the constitution favors unelected bureaucrats and judges over elected politicians, instability will continue, Kristina Kazmi, an Asia analyst, wrote in a report for IHS Global Insight, a U.S.-based research firm.
“If the parliament does indeed elect a prime minister, the PAD does not approve of, the same cycle of protests and deadlock will start again,” she wrote in the Dec. 2 report.
Similar protests may push some new investment to other Southeast Asian countries, including Vietnam, Indonesia and Malaysia, because such lawlessness encourages street gangs in Bangkok, some business leaders said.
“Even investors who have known Thailand for a long time are afraid things might get out of hand,” said Nandor von der Luehe, chairman of the Joint Foreign Chambers