6 June 2024

Foreign investors may hesitate to invest in Thailand due to concerns over the Thai government’s stability, now that the Constitutional Court has accepted for consideration the petition by a group of 40 senators, claiming that the court should remove Prime Minister Srettha Thavisin for alleged violation of ethical standards for the appointment of Phichit Chuenban as PM Office minister.

Phichit resigned ahead of the court’s decision to accept the petition.

Kriangkrai Thiennukul, president of the Federation of Thai Industries (FDI), said that the court’s decision has affected the confidence of corporate executives, to the extent that they may wait and see how the political situation pans out before investing.

Although the court decided not to suspend the prime ministerduring their deliberations, Kriangkrai said that there is already a risk, adding that some investors have asked for how long the case will drag on, before there is a decision by the court, and whether the promises given by the government regarding some investment projects will be kept.

Meanwhile, Tanit Sorat, vice president of Employers’ Confederation of Thai Trade and Industry (EconThai), said that the case has impacted the government’s stability and that the cabinet may be reshuffled again, which will affect the government’s policies and the economic situation.