Japan firms to stay, want protection
Japanese companies are still confident about staying in Thailand but want the government to draw up a comprehensive plan to protect businesses from floods in the future.
“We can say that Japanese investors will keep their investment and invest more in Thailand in the future, as this is a good place with infrastructure. In particular, it is considered the centre in Asia with supply-chain industries to serve their investment,” Japanese Ambassador Seiji Kojima said yesterday.
Japanese investors want to see the government come out with the best solution that also persuades reinsurers to cover their business risk.
After meeting with Industry Minister Wannarat Charnnukul, Kojima said Japan had established very strong bonds with Thailand and the close relationship in business and government would not be easily damaged by floods.
The Japan International Cooperation Agency (JICA) and the Royal Irrigation Department will upgrade their master plan for a water system to prevent floods in the future.
The Japanese government and private sector are ready to extend assistance to Thailand for rehabilitation efforts and the prevention of floods, Kojima said.
Tokyo has announced three packages – emergency, financial, and moral and technical support. The moral support will help flood victims recover their sanity and the technical support will help agencies prevent future floods.
Japan has donated 1 billion yen (Bt395 million) and sent 10 high-efficiency mobile pumps for drainage. The JICA has also sent two experts and will send eight more to help Thailand manage water flow.
The Japan Bank for International Cooperation is considering extending soft loans to Thai banks so they can help businesses, especially small and medium-sized enterprises, recover after the severe flooding.
Some insurance companies have refused to issue policies to Japanese firms in Thailand, Kojima said. Wannarat said government agencies would soon discuss the issue to ensure that companies investing in the Kingdom are protected against risk.
He also told Kojima that the government was working hard to solve the flood problem as soon as possible. Many flooded industrial estates in Ayutthaya are expected to start pumping out water next week.
Rojana Industrial Park will now start draining water on Monday, earlier than the original target of next Thursday. The process will take about two weeks and then companies can resume operating within 30-45 days.
