ID :
142361
Thu, 09/16/2010 - 18:24
Auther :
Shortlink :
http://m.oananews.org//node/142361
The shortlink copeid
Strong baht hurts Industrial Sentiment Index in August: FTI
BANGKOK, Sept 16 – The continued strong baht adversely affected the Thai Industries Sentiment Index (TISI) in August, causing a drop of the TISI by 102.4 in the previous from 108.6 in July, according to the Federation of Thai Industries (FTI).
FTI chairman Payungsak Chartsuthipol said the index declined in terms of purchase orders, total sales volume, production output and operating turnover.
The low index last month was attributed to the continued baht strength affecting exports, a rise in the policy interest rate, floods in many areas, and entrepreneurs’ concerns over the economy in the fourth quarter of 2010.
The entrepreneurs are also concerned about the Thai economy in the second half of this year, which might slow down, as well as the fragile global economy, particularly the world’s leading economies.
Meanwhile, the TISI in the next three months is projected to drop to 115.4 in August from 117.6 in July as industrial entrepreneurs expected the purchase orders, total sales, production, and operating performances would decline, the FTI chairman said.
Manufacturers in the industrial sector urged government agencies to initiate measures to help entrepreneurs, especially those running small business, impacted by the baht appreciation.
They also asked the government to speed up national reconciliation plan, aiming to stabilise the political atmosphere, to upgrade more local products under the Thai Industrial Standard to prevent influx of low-quality goods from other countries to compete with Thai products, to designate areas for industrial expansion.
In addition, the FTI said that the related agencies should play a role in setting up a four-party committee including delegates from the government, the private sector, the public sector and academics in order to collaborate in solving problems and to ease tension between industrial sector and the public.
Meanwhile, the federation expressed concern that the continuing baht rise is adversely impacting the country’s automobile exports, said a spokesman for the FTI Automotive Industry Club.
Surapong Paisitpattanapong explained the baht appreciation may cause Thailand to lose opportunity for investment by Japanese auto entrepreneurs who face a robust yen problem and planned to shift their manufacturing bases to other countries.
If the baht remains strong, the Japanese investors may likely invest in other countries in the region, particularly in Indonesia and Vietnam, instead of Thailand.
The FTI Automotive Industry Club spokesman added that each one baht appreciation against the dollar causes export losses worth Bt1.6 billion (US$51.9 billion).
Generally the monthly value from the exports stands around Bt5 billion ($162 billion).
He added that if the baht still hovers around Bt31 against dollar, the exports will grow as earlier projected. (MCOT online news).
FTI chairman Payungsak Chartsuthipol said the index declined in terms of purchase orders, total sales volume, production output and operating turnover.
The low index last month was attributed to the continued baht strength affecting exports, a rise in the policy interest rate, floods in many areas, and entrepreneurs’ concerns over the economy in the fourth quarter of 2010.
The entrepreneurs are also concerned about the Thai economy in the second half of this year, which might slow down, as well as the fragile global economy, particularly the world’s leading economies.
Meanwhile, the TISI in the next three months is projected to drop to 115.4 in August from 117.6 in July as industrial entrepreneurs expected the purchase orders, total sales, production, and operating performances would decline, the FTI chairman said.
Manufacturers in the industrial sector urged government agencies to initiate measures to help entrepreneurs, especially those running small business, impacted by the baht appreciation.
They also asked the government to speed up national reconciliation plan, aiming to stabilise the political atmosphere, to upgrade more local products under the Thai Industrial Standard to prevent influx of low-quality goods from other countries to compete with Thai products, to designate areas for industrial expansion.
In addition, the FTI said that the related agencies should play a role in setting up a four-party committee including delegates from the government, the private sector, the public sector and academics in order to collaborate in solving problems and to ease tension between industrial sector and the public.
Meanwhile, the federation expressed concern that the continuing baht rise is adversely impacting the country’s automobile exports, said a spokesman for the FTI Automotive Industry Club.
Surapong Paisitpattanapong explained the baht appreciation may cause Thailand to lose opportunity for investment by Japanese auto entrepreneurs who face a robust yen problem and planned to shift their manufacturing bases to other countries.
If the baht remains strong, the Japanese investors may likely invest in other countries in the region, particularly in Indonesia and Vietnam, instead of Thailand.
The FTI Automotive Industry Club spokesman added that each one baht appreciation against the dollar causes export losses worth Bt1.6 billion (US$51.9 billion).
Generally the monthly value from the exports stands around Bt5 billion ($162 billion).
He added that if the baht still hovers around Bt31 against dollar, the exports will grow as earlier projected. (MCOT online news).
