February 14th, 2007, 06:53
Singapore (AFP) via Bangkok Post
"The Political and Economic Risk Consultancy (Perc) said yesterday in its latest survey that "risks are rising sharply in Thailand as a result of the continuing domestic political problems and the possibility of social unrest." It added that "conditions could deteriorate in 2007." The survey of expatriate business executives rated Singapore as Asia's least risky economy and Indonesia as the most precarious.
Thailand's military ousted the twice-elected prime minister Thaksin Shinawatra in a bloodless coup last September. The junta has promised to hold elections and a return to democracy by the year-end.
Of the 14 economies surveyed by Perc, "Thailand is the one that foreign investors should perhaps monitor most closely in the months ahead for changes that could affect business risks", it said.
Thailand's recent moves to impose currency controls and limit foreign stakes in Thai companies have shocked foreign traders and business people. In a best-to-worst ranking from zero to 10, Singapore received an overall score of 2.74, beating Japan, which finished second with a grade of 3.13, Perc said in the survey obtained by AFP.
Singapore's score was lower than Australia's 2.69, but better than the United States at 3.15. Australia and the United States were included in the Asian survey as a basis for comparison, Perc said.
Excluding those two nations, Hong Kong came in third after Japan with a score of 3.33, followed by Malaysia at 4.66, Taiwan 4.76, South Korea 4.78 and Vietnam 5.36. China was in eighth place with a grade of 5.44, followed by Thailand at 5.49, the Philippines at 5.74, India at 6.24 and Indonesia at 6.79. To get an average overall ranking, the survey measured risks relating to domestic politics, social instability, institutions, human resources, physical factors and external developments.
While Singapore retained the overall lead, perceptions of the domestic political situation had "worsened slightly" from five years ago, and threats from external risks saw a "big" rise, Perc said. The increasing vulnerability to external developments was a result of more Singaporean companies expanding overseas, where risks were much higher and beyond the control of the government to manage, Perc said. "As can be seen in the case of Temasek's investment in Shin Corp in Thailand, these investments potentially expose Singapore to economic and diplomatic problems," the Hong Kong-based consultancy said. State-linked investment firm Temasek Holdings last year bought Thai telecom giant Shin Corp from the family of then prime minister Thaksin. The tax-free deal sparked massive rallies against him that culminated in his ousting.
Singapore was in fourth place behind Japan, Australia and Hong Kong in the variable measuring social instability risks, and was in 10th place when measured against external political risks. Perc said that while Indonesia received the worst score overall, perceptions had improved over five years due to lower domestic political and social disorder risks. Among Asia's developed countries, the risks were highest in South Korea, largely due to the socialist North, Perc said."
"The Political and Economic Risk Consultancy (Perc) said yesterday in its latest survey that "risks are rising sharply in Thailand as a result of the continuing domestic political problems and the possibility of social unrest." It added that "conditions could deteriorate in 2007." The survey of expatriate business executives rated Singapore as Asia's least risky economy and Indonesia as the most precarious.
Thailand's military ousted the twice-elected prime minister Thaksin Shinawatra in a bloodless coup last September. The junta has promised to hold elections and a return to democracy by the year-end.
Of the 14 economies surveyed by Perc, "Thailand is the one that foreign investors should perhaps monitor most closely in the months ahead for changes that could affect business risks", it said.
Thailand's recent moves to impose currency controls and limit foreign stakes in Thai companies have shocked foreign traders and business people. In a best-to-worst ranking from zero to 10, Singapore received an overall score of 2.74, beating Japan, which finished second with a grade of 3.13, Perc said in the survey obtained by AFP.
Singapore's score was lower than Australia's 2.69, but better than the United States at 3.15. Australia and the United States were included in the Asian survey as a basis for comparison, Perc said.
Excluding those two nations, Hong Kong came in third after Japan with a score of 3.33, followed by Malaysia at 4.66, Taiwan 4.76, South Korea 4.78 and Vietnam 5.36. China was in eighth place with a grade of 5.44, followed by Thailand at 5.49, the Philippines at 5.74, India at 6.24 and Indonesia at 6.79. To get an average overall ranking, the survey measured risks relating to domestic politics, social instability, institutions, human resources, physical factors and external developments.
While Singapore retained the overall lead, perceptions of the domestic political situation had "worsened slightly" from five years ago, and threats from external risks saw a "big" rise, Perc said. The increasing vulnerability to external developments was a result of more Singaporean companies expanding overseas, where risks were much higher and beyond the control of the government to manage, Perc said. "As can be seen in the case of Temasek's investment in Shin Corp in Thailand, these investments potentially expose Singapore to economic and diplomatic problems," the Hong Kong-based consultancy said. State-linked investment firm Temasek Holdings last year bought Thai telecom giant Shin Corp from the family of then prime minister Thaksin. The tax-free deal sparked massive rallies against him that culminated in his ousting.
Singapore was in fourth place behind Japan, Australia and Hong Kong in the variable measuring social instability risks, and was in 10th place when measured against external political risks. Perc said that while Indonesia received the worst score overall, perceptions had improved over five years due to lower domestic political and social disorder risks. Among Asia's developed countries, the risks were highest in South Korea, largely due to the socialist North, Perc said."