Stockbrokers recommend investors buy into Thailand and Koh Samui property funds prior to the widely expected government announcement that capital control measures will be scrapped.
The stock market is expected to react optimistically to the removal of capital control but negatively if the measures remain, experts said. Stockbrokers believe it is likely that authorities will remove the 30-per-cent withholding Act that was implemented on December, 2006. The Bank of Thailand and Finance Ministry are due to discuss whether the Act should be discarded in order to regain the confidence of foreign investors, although it may be likely that the power that be introduce new measures to deal with with the consequences of the removal.
