How will the recent political changes in Thailand affect the country and the region? In particular, how will business in the region be affected?

THE coup in Thailand comes as a shock to everyone and is a big setback for democracy in Thailand. Coming 15 years after the last coup, it highlights the political and country risk of doing business in emerging markets. The coup raises many questions about Thailand - whether foreign investors will continue to invest in the country, whether the coup will result in further political instability in the coming months and more importantly, whether the military will continue to intervene in the future even when elections are held next year.

I do not think a contagion effect reminiscent of 1997, which started from Thailand, will be repeated again this time. For one, South-east Asian economies are far stronger with much larger foreign reserves and lower foreign debt. Secondly, most countries have cleaned up their act through many corporate restructuring and better transparency. Hence, while the political situation in Thailand will continue to weigh on that country, I believe other South-east Asian countries, including Singapore, will largely be unaffected.

- Wee Piew
CEO, HG Metal Manufacturing Ltd