Business leaders are uncomfortable with the cabinet's approval of draft royal decree for a royal pardon that could include Thaksin Shinawatra, saying it could add political risk at a time when businesses are already suffering from floods.
''It sounds strange to do a thing like this as it is not the appropriate time. People are concerned about the flooding,'' said Phongsak Assakul, acting chairman of the Thai Chamber of Commerce.
The decree approved by the cabinet on Tuesday would seek pardons for thousands of convicts on the occasion of His Majesty the King's birthday next month. However, it was worded in a way that would include people convicted of corruption, notably the self-exiled former prime minister.
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The first priority for government, said Mr Pongsak, remains to push water out to sea as soon as possible.
If the government cannot manage the flood, people will be increasingly unhappy because the water is becoming polluted now.
''The mood of the people can't be good,'' he said. ''Businesspeople don't want to see the government act like this, though it has the right to propose the decree as well as make political decisions.
''As long as Thailand still has water, rehabilitation and prevention measures will not happen.''
Pornsil Patcharintanakul, the chamber's vice-chairman, said the last thing businesses needed now was a political decision that could provoke protests or even riots.
He said businesses believed the government should stay focused on the big picture and maintain a balance among political, economic and social issues. If the government cannot balance these three elements, it is failing in its political role.
''Businesses feel political risk may return again so the government should rethink [the pardon] and take the opportunity to do it better,'' he said.
''Businesses have severely damaged and have no weapons. The government has to be careful and not underestimate [the impact of its decisions].''
Akapol Sorasuchart, president of the Thailand Convention & Exhibition Bureau (TCEB), suggested the government not stir up any new political conflict again as the country has already suffered a lot from flooding.
Since the end of 2008, the tourism business including the meeting, incentive, convention and exhibition sector (Mice) has suffered a lot of negative effects from political instability.
''We have been hurt severely by the flood crisis and this should be enough. The government should focus on its reconstruction plans to revive the overall economy,'' he said.
Mr Akapol said private operators already had to deal with many business risks, and political risk would re-emerge due to the approval of the royal pardon decree.
As of Nov 15, five Mice events have been cancelled and another 19 are postponed, which means the loss of 3.23 billion baht in Mice revenues.
''Private tourism and Mice operators are trying hard to recover from the flood and we need to see the confidence of foreign tourists restored. But if political problems return, their hope for recovery will disappear,'' Mr Akapol said.
The TCEB and Mice operators have launched a campaign called ''Together We Fight for Thailand'' to help restore confidence, with a budget of 40 million baht.
Operators hope to see government agencies and private firms to spend more on meetings to spur domestic activity after the floods.
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