JAPANESE INVESTORS WILL STAY PUT

       Japanese investors yesterday insisted they had no plans to relocate to other countries despite having had to postpone many investment projects due to the financial crisis.
       "Most parent companies in Japan have adjusted their investment plans, not only in Thailand, but around the world. This is the main reason for the lower investment this year. We expect to expand our investment after the crisis is over," said Yo Jitsujakata, president of the Japan Chamber of Commerce in Bangkok.
       A chamber survey of 1,300 Japanese firms found they would continue investing here, because Thailand was the most important base in Asia.
       Although Japanese direct investment in the Kingdom has fallen, the decline is less than in other countries, he said.
       Toyota Motor Thailand president Kyoichi Tanada paid a visit to Deputy Prime Minister Korbsak Sabhavasu, asking for the government's help to boost purchasing power and relax capital-control regulations to support Toyota's transfer of its regional centre from Singapore to Thailand.
       A source present at the meeting said Toyota called for measures to promote pickup demand, which would benefit the economy, because the industry involved numerous parts manufacturers.
       Specialised financial institutions were encouraged to guarantee down payments.
       Toyota operates three plants and a research-and-development centre in Thailand.
       Jitsujakata said Japan was willing to cooperate with Thailand in technology transfers and skill development.
       "To lure foreign direct investment, Thailand needs to show a clear policy in investment promotion and also communicate with foreign investors, particularly SMEs, about what Thailand will throw its support to," he said.
       The chamber's survey showed the greatest concern for Japanese firms, 90 per cent of which are SMEs, was liquidity shortage.
       The Small and Medium Enterprise Development Bank was urged to ease its lending criteria.
       Board of Investment secretary-general Atchaka Sibunruang Brimble said her agency had explained the updated environmental rules and regulations for the Map Ta Phut Industrial Estate to the Japanese investors.
       Nippon Steel and JFE Steel have submitted letters of intent to build steel furnaces, but their plans have been stalled for two years, because of the government's slow process in exploring the location and the public's environmental concerns.
       Thailand needs the upstream steel smelter to secure a supply of raw materials for downstream manufacturers and reduce the risk of price fluctuations, which is the main factor in worsening competitiveness in many industries, including autos, construction and electronics, she said.