In addition to reduced raw material import costs, investing now would also prepare the country for the next cyclical upturn in the economy.

Also, Thai companies should raise funds from the local capital market to invest in foreign countries to ease pressure from the strengthening baht, said chairman Paiboon Nalinthrangkurn.

"As more foreigners invest in Asia, Thailand should capture this opportunity to develop its infrastructure and allow the capital market to get stronger," said Mr Paiboon.

For capital market development, measures to support foreign and dual listings should be developed, as well as rules amendments that make it easier for Thai investors to invest in foreign markets, he said.

He added that the baht appreciation was due mainly to normal economic activities: huge export growth causing a current account surplus, and foreign direct investment (FDI).

"As of the end of September, it is estimated that foreign inflows from the current account and FDI may reach US$10 billion," said Mr Paiboon.

Net capital inflows through the Stock Exchange of Thailand as of last Friday were only $967 million. Foreign inflows to the local bond market were $5.67 billion. Total inflows to the Thai capital market totalled 6.65 billion baht.

"Capital market activities were only supporting factors," said Mr Paiboon.

Of course, all of Asia Pacific has seen currencies rise against the dollar.

"We believe the five measures imposed recently by the central bank will help balance capital flows. This will help stabilise the baht in the long term without needing to control capital," said Mr Paiboon, adding that occasional intervention by the central bank would also help.