Advertisement
Will Thailand’s election turmoil hit China-backed US$54 billion Eastern Economic Corridor?
- Princess Ubolratana Rajakanya’s abortive prime ministerial bid may have stunned investors
- But the Thai baht and the kingdom’s economy have a ‘Teflon’ reputation
Reading Time:4 minutes
Why you can trust SCMP
Thailand’s Eastern Economic Corridor, a 1.7 trillion baht (US$54.2 billion) development heavily reliant on Chinese backing, should emerge unscathed by the kingdom’s pre-election political turmoil, analysts say.
Princess Ubolratana Rajakanya’s abortive prime ministerial bid last weekend had stunned investors and political observers, as it brought to the fore questions about differences in the palace – King Maha Vajiralongkorn vetoed the move – and whether the Shinawatra clan that had backed the candidacy would allow the vote on March 24 to go ahead without protest.
In any other Southeast Asian economy, the political risks emanating from that episode alone would have triggered a major crisis in investor confidence.
Advertisement
But keen observers of Thailand say the “Teflon nature” of the kingdom’s economy and the Thai baht, largely resilient to internal shocks, is likely to continue.
The baht has shown its mettle with a standout performance in 2018 even as the currencies of emerging economies like Indonesia were routed – something likely to be welcomed by investors in the corridor, or EEC.
Advertisement
Among the big-name Chinese corporate entities that have sunk their teeth into the investment programme are Huawei, Alibaba Group Holding, and China Communications Construction Company.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x