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18 Jan 2008

International Economy

Taiwan’s Elections: Impacts on the Thai Economy (Business Brief No.2100)

คะแนนเฉลี่ย

The outcome of the Taiwanese parliamentary elections that have just been held is a good omen for Taiwan-China relations. This may pave the way for improved investment and business between the two countries. For , positive effects may be seen in the exports of farm products, food and raw materials to . On the downside, however, Thai-Taiwanese trade and Taiwanese FDI in may drop due to closer trade relations between and . That is to say, 's trade and investment may be challenged by the improved ties between those two countries.

This is regarded as a new challenge for the Thai government and related agencies. Urgent measures should be implemented to create business opportunities for Thai businesspersons and attract long-term Taiwanese investment into . KASIKORN RESEARCH CENTER (KResearch) views that actions that should be taken by the government and relevant agencies include:

  • They should encourage and support investment to stimulate the recovery of the domestic economy, as this would create more employment and generate higher domestic income. An overriding investment promotion policy must be clearly drafted to draw FDI from and because at present, has to face the challenge of competition with other countries within the Asian region, e.g., , , , etc.

  • Clear national development plans and designation of trade and investment strategies must be implemented to support sustainable domestic growth.

  • The state sector and concerned agencies should expedite concrete progress on the country's infrastructural projects. They should also develop, improve and correct logistics systems, making them more modern and efficient to increase our competitiveness and international trade.

They should promote human resource skills development and education into various fields to support the growth of industries with bright prospects in the future. Moreover, research and development into science and technology must be encouraged to develop the numerous business sectors of the country.

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International Economy