Thailand’s Coup Season

Posted on 23 May 2014 by ABPC

To the outside world, the current protests in Thailand are large demonstrations of people protesting actions of a recently dissolved majority government. But up close, other than troops on the ground you , wouldn’t even know it was going on. Everybody goes about performing their daily routine with minimal interruption. Since 2005, protest movements and political crises similar to the recent one have come and gone with fluid regularity while the party in power after each new election has remained the same. For us guys that live here, we have experienced this many times before. This is actually my 3rd Coup, 1991, 2006 & 2014.

From an investment stand point, these types of protests have happened before and will happen again. They tend to create news outside the country that distorts investments in Thailand long enough to create opportune times to invest. A popular saying amongst savvy investors in Thailand is “buy on coup, sell into election.” The functions of the economy are largely unaffected by these political actions, although there is an impact on investment psychology which needs to be monitored for such events as the 1997 collapse of the Thai Baht. Posturing between parties and political actions of citizens has minimal impact on the day-to-day business climate. As for tourism, while it experiences blips from these political movements, “tourism’s resiliency is strong, the tourist always come back to savour Thailand’s natural beauty.

The current military coup can be viewed as a positive, it creates a more stable environment. It is also positive for financial markets in the near term by reducing uncertainty and lowering the risk of the political standoff turning violent.

These events are unfortunate and here in Pattaya life goes on as normal with little disruption. For those that require more information keep in touch and watch this space.

Martial Law Imposed Across Thailand As Political Conflict Continues

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