As the world watches Thailand's military take control of the government in a coup, our Bangkok-based Associate Director for Global Business Development says that potential investors shouldn't abandon ship just yet.
After months of protests and riots, the Thai military finally had enough yesterday; it took control of the government, suspended the constitution and vowed to restore order and enact political reforms.
While the notion of a military coup is not always considered welcome, in this case, it could well prove to be the best thing for Thailand.
Modern history has been soundly covered around the world but in terms of business confidence in Thailand little seems to have changed. One would expect more than half a year of economic protests to cause a stock market dive, but in recent weeks the stock market has actually been slowly creeping up. There is growing investor sentiment that the problems are being resolved.
Regardless of the temporary turbulence, Thailand remains the second largest economy in South East Asia (by GDP), and a great gateway to the rest of the region. It's something that's often overlooked when talking about the giant economies of APAC. Long-term, Thailand is here to stay.
Investors should not be put off by visions in western media of the military; in the streets of Bangkok it's business as usual. This coup – the 18th since the end of absolute monarchy in the 1930s - is unlikely to stop that progress.
In fact, Japanese camera-maker Nikon, which makes around 90% of its digital single-lens reflex cameras in Thailand, told the Wall Street Journal that political upheavals in the kingdom don't usually affect production facilities. Likewise, Toyota and Ford both said the declaration of a coup hasn't affected auto production.
Strange as it is to say, the coup could be seen as a positive for Thailand. There is now some certainty after months of protests.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.