Japanese investors worried about future flood
Japanese manufacturers operating out of the Saha Rattana Nakorn Industrial Estate are concerned about a flood crisis this year, especially since there is no sign of a flood-prevention system being set up to protect the complex, Industry Minister Pongsvas
The bosses of two Japanese firms operating out of the estate – TS Tech (Thailand) and KVS Plating – visited the minister to discuss the progress of flood-prevention systems. The investors were accompanied by a team from the Japan External Trade Organisation (Jetro) led by president Setsuo Iuchi
Pongsvas said that after speaking to his visitors, he realised that Japanese investors at Saha Rattana Nakorn were not confident in the estate operator’s ability to keep water out of the complex this year. Up to 90 per cent of the businesses based at the estate are from Japan.
He said the investors wanted to know if a prevention plan would be implemented so that they can decide whether they should stay or move out of Thailand.
The minister said that SCMB, the estate’s rehabilitation plan manager, claims it is preparing a conceptual design of the flood-protection facility. SCMB will discuss the plan with Thai Asset Management Corporation (TAMC) next week. Since TAMC owes money to the industrial estate, SCMB will have to seek its permission before it can seek a loan from the Government Savings Bank (GSB) to invest in a flood-protection system.
“If TAMC approves the plan next week, SCMB can then borrow from GSB and start constructing the system by April,” he said.
An investment of Bt240 million is required to construct a flood-protection system around the 8-kilometre diameter of the estate. However, the government is committed to providing two-thirds of the total cost, hence the estate might only need Bt80 million for the system.
The operator of the Saha Rattana Nakorn Industrial Estate believes that the 300 rai still up for sale in the complex will be snapped up as soon as the flood-protection wall has been constructed and funds will be available for the loan to be paid back.
Pongsvas said the Board of Investment (BoI) had been given the job of providing updated information on flood-prevention plans at all seven industrial estates that were inundated last year. The information should be available at the BoI website in four languages, namely Thai, English, Japanese and Chinese.
He said that though Jetro had promised that Japanese businesses would continue investing in Thailand, it has also called on the government to implement a master plan to prevent future crises.
Meanwhile, Jetro will be holding a seminar in Japan from March 6-8 to provide information to Japanese investors about Thailand’s flood-prevention system. Prime Minister Yingluck Shinawatra will deliver a speech at the forum.
