Lingering political risks next year: BOT

 "Political risks will persist next year, as they tend to escalate after the election. Floods just overshadow the risks, but the risks would be clearer after this. Next year's focus would also be placed on the government's water management plan. 2012 would be a year that requires management manouvering," said Domestic Economy Department Director Mathee Supapongse.
 He noted that flood-induced unemployment is temporary and not worrisome thanks to tight labour market. The issue now is the shortage of skilled labour as well as the minimum wage hike which could encourage workers to work at factories near home and lead to more severe shortage in industrial zones.
 On the water management plan, he viewed that the grand-scale investment may not be materialised within a year. The government thus needs to devise short-term plans to prevent another disaster, which could drive away foreign investment.
 This week, the central bank will visit Bangpa-in Industrial Park and Hi-Tech Industrial Estate, two of seven inundated industrial estates. It expects discussion with over 100 business operators and the information would be presented to the Monetary  Policy Committee at the Jan 25 meeting.
 Mathee admitted that the floods do not constitute direct impacts on foreign investment, but this could slow down foreign direct investment. He believed that 90 per cent of flood-impacted business operators would fully recover within the second quarter of next year.