Thailand’s biggest investor Japan yesterday expressed “grave concerns” after the army imposed martial law, while the US said it must only be “temporary” as multinational firms monitored events nervously.
After almost seven weeks of anti-government protests, generals ordered forces onto the streets of Bangkok and troops were positioned at TV stations as the army said the media would be censored, but despite the crisis — which saw Southeast Asia’s second-biggest economy shrink 0.6 percent in the first quarter — analysts said the economy could bounce back.
Asian markets mostly rose yesterday following a second straight day of gains on Wall Street, while Thailand’s main index slipped.
Photo: Bloomberg
“We have grave concerns about the situation in Thailand,” Japanese Chief Cabinet Secretary Yoshihide Suga told reporters in Tokyo. “We once again strongly urge all parties concerned to act in a self-restrained manner without using violence.”
Private-sector think tank Teikoku Databank said in February nearly 4,000 Japanese firms operated in Thailand, with investments the Bank of Thailand said were worth US$6.89 billion last year — half of the total inward investment.
That figure is more than the next three biggest investors combined — the US, the UK and ASEAN.
Thailand has become increasingly important for Japanese firms as they shift operations from home to counter high wages and an overvalued yen, and to mitigate the effects of natural disasters on the supply chain.
Car giant Honda Motor Co said political instability was leading it to reconsider a second assembly plant it was hoping to go online in April next year.
“We are watching the political situation in order to decide to go ahead with the plan [to start operations] or not. If the political situation improves, we may complete the factory and start production,” Honda spokesman Teruhiko Tatebe said.
Toyota Motor Corp, the world’s biggest automaker, also said it was watching events carefully, but added all three of its plants were operating normally.
“The morning shift started as per usual at all plants. A decision concerning the evening shift will be made based on the situation,” a Toyota spokesman said.
Washington urged “all parties to respect democratic principles, including respect for freedom of speech.”
“We understand the Royal Thai Army announced that this martial law declaration is not a coup,” US Department of State spokeswoman Jen Psaki said in a statement. “We expect the army to honor its commitment to make this a temporary action to prevent violence and to not undermine democratic institutions.”
Indonesia, Southeast Asia’s biggest economy and a key ASEAN partner, also expressed its fears and urged a return to normality.
“Indonesia has consistently called for respect of constitutional process and democratic principles, in order to promote national reconciliation and unity, reflecting the wishes of the Thai people,” Indonesian Minister of Foreign Affairs Marty Natalegawa said.
However, the reaction on the markets was tempered.
The Stock Exchange of Thailand sunk 1.58 percent on opening, before picking up slightly to sit 0.88 percent lower. The Thai baht dipped to 32.53 against the US dollar from 32.47 baht on Monday.
Analysts said the economy is largely immune to shocks — a legacy of decades of political uncertainty.
“Thais are so used to having tanks on the streets,” Invesco fund manager Jalil Rasheed told Dow Jones Newswires.
He added that from a markets perspective, “the largest participants are local retail investors, who have been through this before.”
Andrew Colquhoun, Fitch Ratings’ head of Asia Pacific sovereign ratings, said the move could actually help break the long-running political deadlock.
“The key factors for the ratings are whether Thailand can avert more serious and bloody political disorder, and whether we see a return to a fully functioning government that is able to make policy and pass a budget,” Colquhoun said.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last