Jun 2, 2012

Thailand - Asean chief: Settle your differences quickly

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The political chaos in Thailand could have an impact on investor confidence, not just in Thailand but throughout the Association of Southeast Asian Nations, Asean secretary-general Surin Pitsuwan said on Friday.

The yellow-shirt People's Alliance for Democracy (PAD) began a new round street protests on Wednesday to stop Pheu Thai MPs' attempts to force an amnesty bill through the parliament for those convicted by an investigative procedure established by the military installed government after the coup on Sept 19, 2006.

Debate on the bill was adjourned indefinitely on Friday as a result of the protest.

Mr Surin, a former Thai foreign affairs minister, said Thais should settle their "differences" as soon as possible so the country can reap the benefits of  Asean's attractiveness in the eyes of investors.

"Every time the political conflict, or tension, is out on the street,  confidence in the country and in Asean is diminished. I hope we settle these differences as soon as possible,” said the secretary-general.

“Each Asean member has to take advantage of all opportunities and potential. We have to be ready. The investors will certainly be concerned.”

He said the political chaos in Thailand would affect Asean as a whole as the country was one of the founding members of Asean. It would play in a key role in the region’s transportation linkages and economic integration.

Finance Minister Kittiratt Na-Ranong called on the opposing sides to control their temper when discussing the national reconciliation bills.

"Political stability is vital to a stable economy and I ask politicians to follow the four cardinal virtues," the deputy premier said.

The four cardinal virtues are prudence, justice, fortitude, and temperance, he said.

"I don't know much about politics. For my part, I'll do my best to oversee the economy," Mr Kittiratt said. "People are now expressing their views aggressively but i want to see everyone speak slowly and nicely to each other."


On Wednesday and Thursday, chaos erupted in parliament as the opposition MPs attacked House Speaker Somsak Kiatsuranont for pushing discussion of the unity bills to the top of the agenda.

Kosit Panpiemras, the executive chairman of Bangkok Bank, said the private sector is strong and can continue to drive the economy despite political instability.

"Thailand has had many political events. This is not the first time," Mr Kosit said, referring to the yellow-shirt’s mass protest outside the parliament building.

People wanted to see continuing peace and order and they hoped nothing bad will happen this time, he said.

The private sector continued to drive economic growth regardless of what happens in the country. The sector could well adapt  to changing situations, but some industries like tourism would still be affected, he said.

"In reality, the private sector plays a more important role in driving the economy [than the political sector]," Mr Kosit said.



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