Violence in Burma to affect Thai business

Bangkok Post
4 Oct 2007

Violence in Burma caused by the military government's crackdown on mass street protests by monks and the people, if persistent, will have an impact on businesses owned by many groups of Thai investors in the country, according to the Kasikorn Research Centre.

The leading think tank reported should the unrest drag on, and escalate, it would affect Thai businesses investing in tourism in Burma since foreign tourists would reduce their travel into the country.

At the same time, Thai businesses investing in production for export in Burma might be affected by additional international sanctions.

At present, Thai businesspersons have invested in various areas including production, hotels and tourism, fishery, mining, transportation, oil and natural gas drilling, construction, property, and agriculture.

The KRC forecast indicated that should the violence persist, Burma would face more economic sanctions from the international community, particularly the United States, the European Union and Japan.

It said investment made by Thai investors in hotel and tourism businesses in Burma totaled US$228.6 million. Investment projects Thai businesspersons made in the production industry in Burma are worth $614.6 million, the fisheries industry $171 million and agriculture the smallest at $2.7 million.

Power generating projects invested by Thailand in Burma worth $6.03 billion baht involve construction of hydro-power dams along the Salween River, which is expected to take six years to complete.

The project value, combined with that of other investment projects, brought up the total investment value Thailand has in Burma to $7.38 billion.

It resulted in Thailand becoming the biggest investor in Myanmar with Singapore, Malaysia, and Indonesia coming second, third and fourth respectively.

Regarding the border trade with Burma, KRC believed trade activities along the border of the two countries would be sluggish only in the short run unless the violence escalated to such an extent that the border is closed.