BANGKOK, 10 June 2011 – The Ministry of Finance has confirmed that the Thai economic fundamentals remain strong while the domestic politics has nothing to do with the fall of the Stock Exchange of Thailand (SET) index in the past few days.
Permanent Secretary for Finance Dr Areepong Bhoocha-oom believed that external factors are the major causes of the SET index slump while domestic politics and election climate had nothing to do with the recent large selling forces from foreign investors.
Dr Areepong stressed that the fundamentals of the Thai economy are strong, citing the continuously expanding collection of the value added tax and export figures, except for the automotive industry, which has been affected by the twin disasters in Japan.
The permanent secretary admitted that sales of electronic parts plummeted since the technology is in its changing phase while jewellery sales also fall as the industry is affected by external factors. He nonetheless expressed confidence that the Thai exports this year should improve.
Dr Areepong declined knowledge of a suggestion made by foreign analysts that investors should sell Thai stocks due to domestic political uncertainty upon the upcoming election.
