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Coup kept investors away: Thaksin
Wed, Mar 05, 2008 The Straits Times
BANGKOK - THAILAND'S military coup and the ensuing political uncertainty had seriously affected investor confidence, former Thai prime minister Thaksin Shinawatra said in an interview, adding that the new government would find it difficult to win back investors. 'It's quite difficult after a coup d'etat - political uncertainty is going to be a big question for the investor,' Thaksin told the Financial Times, in the first interview since his emotional homecoming last week. However, the former premier, who was ousted from power 17 months ago, said he was not planning to lend his support to the new government. He said he had turned down a request from Finance Minister Surapong Suebwonglee to serve as an economic adviser, to avoid causing difficulties for the new administration.

Thaksin was toppled in a military coup in September 2006 and banned from politics for five years by a junta-appointed tribunal.

He returned to Thailand for the first time last Thursday, where he faces corruption charges.

Since his homecoming, Thaksin has kept an unusually low profile, cancelling several planned appearances.

His allies won elections in December last year, and Mr Surapong said last Thursday that Thaksin's experience and knowledge as a self-made billionaire could help the country.

While Thaksin has insisted he will stay out of politics, he told the FT he thought the new government should exploit the soaring baht and invest in new technologies from abroad.

'We need to take the opportunities of the strong baht and weaker dollar to import capital goods and machinery,' he said.

He said the past two years of political turmoil - including the coup - had been highly damaging, particularly in terms of eroding Thailand's international image, which he said would take time to restore.

'Confidence is very expensive economically,' he said. 'When it's gone, it will cost a lot of money to bring it back - and time, not just money.'

Meanwhile, Thailand's new government yesterday approved a 40-billion-baht (S$1.8 billion) package of tax cuts and other measures to shore up the kingdom's flagging economy.

Finance Minister Surapong said he hoped the package would help spur the economy to grow by at least 6 per cent this year.

The economy grew by 4.8 per cent last year, ranking among the lowest in South-east Asia.

AGENCE FRANCE-PRESSE, REUTERS

HANDS OFF

'If I were to help the government, I would probably create more problems than (I would) solve.'

THAKSIN, who turned down a request from Finance Minister Surapong Suebwonglee to serve as an economic adviser