Bangkok--Feb 9--Fitch Ratings
Fitch Ratings, the international rating agency, today said that the landslide victory of Prime Minister Thaksin Shinawatra's Thai Rak Thai ("TRT") Party in Thailand's election completes a round of remarkably smooth political transitions in Southeast Asia over the last 12 months. This has underlined the region's growing political stability and has supported the business climate.
"Prime Minister Thaksin's victory has ushered in an unprecedented second term for a democratically elected leader and gives his TRT party a very strong position in the legislature that contrasts with weak coalitions that typified previous democratic governments and is possibly unique among Asian democracies," said Brian Coulton, Senior Director and Head of Fitch Ratings' Sovereigns Group in Asia.
Mr. Coulton notes that this follows Prime Minister Abdullah Badawi's success in cementing his leadership in Malaysia after the sweeping victory of United Malay National Organisation party in general elections last March, which helped to diminish fears about the transition to a post-Mahathir regime. President Susilo Bambang Yudhoyono's strident popular victory in Indonesia's first fully democratic elections in October 2004 was a milestone in the country's political development and subsequent manoeuvres have seen his position in parliament strengthened. And while President Gloria Macapagal Arroyo's 2004 election victory in the Philippines was won by a narrow margin, it still enhanced the legitimacy of her government and with stronger support in parliament, her administration at last seems to be starting to gain some traction in fiscal reform, though much remains to be done.
With political transition risks identified as an important feature of Southeast Asia's sovereign credit profile in early 2004, the absence of serious violence, major social tensions or military intervention in these elections and the dominance of secularism has been encouraging. Doubtless, the region continues to face significant political challenges, including domestic security risks. But, Mr. Coulton adds that greater political stability should help policy formulation and consistency and reform implementation, underpinning an increasingly buoyant outlook for investment across the region.
Contact:
Brian Coulton, Hong Kong, Tel: +852 2263 9797
email: [email protected]
Vincent Milton, Bangkok, +662 655 4759/
[email protected]
Media Relations: Ching-Yuen Lock, Singapore,
Tel: +65 6238 7301. End.