The private sector had mixed reactions to the new constitution, expressing satisfaction about the upcoming general election but also worried about the prospects for political reconciliation.

Diplomatic corps in Bangkok told The Nation that they will continue to monitor the political situation in Thailand closely, as the country was considered for years a model of “democratic achievement” in the region.

“We note that the promulgation of the new Constitution is a step along the government’s road map towards a return to elected government,” said US Embassy spokesperson Melissa Sweeney.

The US, since the 2014 coup that toppled an elected civilian government, has not minced words in criticising the junta’s suppression of democracy and human rights. Washington, however, has lowered its critical tone since the new administration under President Donald Trump took office this year.

Like other European countries, Belgium’s Ambassador to Thailand Philippe Kridelka said the international community was closely following the situation in Thailand as the country was a model in the region for not only economic development but also democratic achievements, freedom of media and a creative and independent-minded civil society.

“As friends of Thailand, we hope the promulgation of the new Constitution will speed up the process towards democratic elections, including the adoption of the needed bylaws,” he said.

Portuguese Ambassador to Thailand Francisco Vaz Patto expressed hope that the promulgation of the new constitution will help Thailand return to full democracy. “With a new constitution, we now have more clarity regarding the road map that we hope will lead to elections as soon as possible,” he said.

International scholars and civic groups were, however, spoke plainly about new developments in Thai politics and the promulgation of the new charter will not change the political atmosphere in the country.

Foreigners, notably investors, would view the promulgation of the new charter as a belated, nonetheless important, step forward to political normalcy, said Yasuhito Asami, a lecturer of Thai studies at the Department of Global Politics, Hosei University in Tokyo. However, the promulgation of the Constitution alone will not do much to improve their confidence in Thailand’s investment climate, he said.

‘Political stability’

“The continuation of a ban on political activities even after the enforcement of the new Constitution will be viewed as evidence that Thailand remains many steps away from true political stability,” Asami said in an e-mail interview.

While the new Constitution set the stage for general elections and offered a wide range of rights and liberties, it did little to correct the dire human rights situation in the country, said Champa Patel, Amnesty International’s director for Southeast Asia and the Pacific.

“The new constitution keeps in place the full gamut of orders and decrees imposed by the military government since the 2014 coup, which have facilitated widespread human rights violations, from muzzling freedom of expression and peaceful assembly to torture and other ill-treatment,” Patel said in a statement.

Stanley Kang, chairman of the Joint Foreign Chambers of Commerce, yesterday welcomed the new Constitution. “It’s alright. We’re comfortable with Thailand’s political road map after [promulgation of the] new Constitution,” he said.

Politics may not count much in investment decision-making, but other factors like public investment in infrastructure and the streamlining of regulations are important parts of the picture, he said.

There are still impediments to private investment such as restrictions on work permits, issuance of visas and the high cost of setting up a company here. Foreign investors have proposed many revisions to regulations to make it easier to do business here but nothing much has changed so far, he said.

Tanit Sorat, a businessman and vice chairman of the Employers’ Confederation of Thai Trade and Industry, expressed confidence in the junta’s road map. “It has become much clearer about the general election, which will be held in the middle of next year,” he said.

That does not mean investors will rush to build factories here, as they have to look at other variables, such as production costs, profitability and the availability of skilled labour. He also expressed concern about the prospects for political reconciliation. The election may not necessarily lead to reconciliation, as Thailand has been deeply divided. Many issues remain unresolved, he said.

Kobsithi Silapachai, head of capital-markets research at Kasikornbank, said it would have a limited positive impact on financial markets – stocks and foreign exchange – because the next general election remains many months away.

The timeline for drafting organic laws is still uncertain and political parties have not yet been allowed to hold political activities.