The Federation of Thai Industries (FTI) is assessing the impact on Thai investors in Myanmar after authorities in that country ordered companies there to suspend debt payments for foreign loans.
Myanmar's central bank instructed companies and individual borrowers to suspend paying principal and interest to foreign lenders in a move to slow Myanmar's decreasing foreign exchange reserves, according to media reports.
Thai companies have major investments in the banking, hospital, hotel and manufacturing sectors in Myanmar.
Kattiya Indaravijaya, chief executive at Kasikornbank (KBank), said the bank's representative office in Myanmar would not be affected by the latest instruction from the Myanmar central bank ordering local companies and banks to suspend and reschedule repayment of foreign loans to exert control over foreign currency flows.
The Central Bank of Myanmar ordered companies with up to 35% foreign ownership to convert foreign exchange into the local currency, state media reported on Monday, extending a rule aimed at relieving pressure on the kyat to include more businesses.
Both KBank and large Thai corporations investing overseas understand the business and political risk of each country, she said.
As a result, the bank believes corporate customers investing in Myanmar can manage regulations from Myanmar government agencies, said Ms Kattiya.
As for KBank, it slowed its business expansion in Myanmar, waiting for a clearer picture of the overall environment in the neighbouring country, she said.
Ms Kattiya said the bank is maintaining its goal of becoming a regional bank through the digital platform.
Foreign debt management and border trade between Thailand and neighbouring countries are two major concerns for the FTI, even as the Thailand Industry Sentiment Index for June increased for the first time in three months to 86.3 points from 84.3 points in May, attributed to positive effects from the easing of lockdown measures.
Political and economic issues in Myanmar remain uncertain, while Laos is struggling to deal with high inflation, said Kriengkrai Thiennukul, chairman of the FTI.
These concerns provide a backdrop as the global economy is expected to slow down, said Mr Kriengkrai.
"Myanmar and Laos are major trading partners for Thailand along the borders. We have not seen a serious impact on border trade yet, with both countries major importers of Thai products," he said.
Thailand is Myanmar's second-largest trading partner after China.
