Identifier
Created
Classification
Origin
06SINGAPORE3827
2006-12-20 10:10:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Singapore
Cable title:
THAI ECON ANNOUNCEMENTS UNLIKELY TO AFFECT
VZCZCXRO9736 PP RUEHCHI RUEHDT RUEHHM RUEHNH DE RUEHGP #3827 3541010 ZNR UUUUU ZZH P 201010Z DEC 06 FM AMEMBASSY SINGAPORE TO RUEHC/SECSTATE WASHDC PRIORITY 2089 INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY RUEHBK/AMEMBASSY BANGKOK PRIORITY 7028 RUEHBJ/AMEMBASSY BEIJING PRIORITY 2375 RUEHBY/AMEMBASSY CANBERRA PRIORITY 1797 RUEHUL/AMEMBASSY SEOUL PRIORITY 3995 RUEHKO/AMEMBASSY TOKYO PRIORITY 5536 RUEHHK/AMCONSUL HONG KONG PRIORITY 6127 RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS SINGAPORE 003827
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN SN
SUBJECT: THAI ECON ANNOUNCEMENTS UNLIKELY TO AFFECT
SINGAPORE IN THE LONG TERM
REF: BANGKOK 7435
The Straits Times Index on December 20 gained .8 percent
after losing 2.2 percent yesterday in reaction to the Bank of
Thailand's (BOT) sudden decision to impose capital control
measures on foreign investors (reftel). Embassy contacts
concurred with media pundits that the quick rebound here was
largely due to an equity exemption announced late yesterday
by the BOT. A Deutsche Bank researcher told us that the
moves showed a lack of foresight by the BOT, but he did not
believe they would negatively affect Singapore in the long
term. He opined that yesterday's decisions mainly served to
call into question the competence of Thailand's Finance
Minister. A Senior Economist from the Monetary Authority of
Singapore told us the repercussions here would likely be
"minimal" and "confined." She predicted that in six months
no one in Singapore would remember this as a major event. We
will continue to monitor the situation closely.
HERBOLD
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN SN
SUBJECT: THAI ECON ANNOUNCEMENTS UNLIKELY TO AFFECT
SINGAPORE IN THE LONG TERM
REF: BANGKOK 7435
The Straits Times Index on December 20 gained .8 percent
after losing 2.2 percent yesterday in reaction to the Bank of
Thailand's (BOT) sudden decision to impose capital control
measures on foreign investors (reftel). Embassy contacts
concurred with media pundits that the quick rebound here was
largely due to an equity exemption announced late yesterday
by the BOT. A Deutsche Bank researcher told us that the
moves showed a lack of foresight by the BOT, but he did not
believe they would negatively affect Singapore in the long
term. He opined that yesterday's decisions mainly served to
call into question the competence of Thailand's Finance
Minister. A Senior Economist from the Monetary Authority of
Singapore told us the repercussions here would likely be
"minimal" and "confined." She predicted that in six months
no one in Singapore would remember this as a major event. We
will continue to monitor the situation closely.
HERBOLD