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42078
Thu, 01/22/2009 - 11:43
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http://m.oananews.org//node/42078
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Government urged to brace for persistent export slowdown
BANGKOK, Jan 22 (TNA) - The Thai government must prepare a contingency plan to ease the impact of the global economic slowdown on the Thai economy and export sector, which are expected to continue slowing in the next few years, according to former deputy prime minister and finance minister Somkid Jatusripitak.
Delivering a key-note speech on “Look at Thailand’s Future,” he said it would take at least a few years for the world economy to turn around, so the government must come up with a plan to cushion the impacts of the world economic meltdown in that period.
The government must give concrete assistance to the export sector by locating new markets, asking financial institutions to help retail exporters, and making Thai export products competitive in terms of prices.
Mr. Somkid said the export sector should not be allowed to be negatively affected by the global economic slowdown without any assistance. Its plunge, he emphasised, would have repercussion in the industrial and labour sectors.
In addition, he suggested the government should pay much attention to the expenditure budget because it could serve as a key drive for the economic growth.
The former finance minister said the government must accept the need to run the budget deficit of 400-500 billion baht more in 2010. Accordingly, the question is where it could mobilise the funds needed to ensure the fiscal woes will not occur.
“The government must step up efforts to restore confidence both locally and overseas. It is the main and direct duty of the government to boost the public's confidence in consumption and investment. At the same time, the government and all Thais must cooperate to convince foreigners that Thai laws are enforced in a fair and impartial manner,” he said.
The country’s exports in December totalled US$11.61 billion in value, down for the second consecutive month by 14.55 per cent due to a decline in the farm and industrial product shipment, according to the Commerce Ministry.
Permanent Secretary for Commerce Siripol Yodmuancharoen disclosed on Wednesday that exports of agriculture and industrial products including fuel fell by 16.1 and 13.9 per cent respectively in the wake of the global economic meltdown.
Imports in December totalled $11.25 billion, down 6.5 per cent from the same month last year. It resulted in a trade surplus of $350.1 million.
Exports for the whole of 2008 totalled $177.84 billion, up 15.58 per cent from previous year as compared with the 12.5 per cent expected earlier.
Mr. Siripol said many earlier projections expected exports to grow 18-20 per cent in 2008, but the combination of the global economic meltdown and domestic political woes, led to the decline in export value in the last few months of the year. It resulted in the export growth of only 15.58 per cent, which is higher than targeted, but lower than some projected.
Imports for the whole of last year totalled $178.65 billion baht, up 27.6 per cent from the previous year. It put the country in deficit of $811.9 million, lower than estimated earlier at $3 billion .
For 2009, Mr. Siripol, said the government must attempt to boost exports because the global economy remains depressed.
Should there be a budget set aside to stimulate the export sector, he believed, export figures would remain positive for this year. (TNA)
Delivering a key-note speech on “Look at Thailand’s Future,” he said it would take at least a few years for the world economy to turn around, so the government must come up with a plan to cushion the impacts of the world economic meltdown in that period.
The government must give concrete assistance to the export sector by locating new markets, asking financial institutions to help retail exporters, and making Thai export products competitive in terms of prices.
Mr. Somkid said the export sector should not be allowed to be negatively affected by the global economic slowdown without any assistance. Its plunge, he emphasised, would have repercussion in the industrial and labour sectors.
In addition, he suggested the government should pay much attention to the expenditure budget because it could serve as a key drive for the economic growth.
The former finance minister said the government must accept the need to run the budget deficit of 400-500 billion baht more in 2010. Accordingly, the question is where it could mobilise the funds needed to ensure the fiscal woes will not occur.
“The government must step up efforts to restore confidence both locally and overseas. It is the main and direct duty of the government to boost the public's confidence in consumption and investment. At the same time, the government and all Thais must cooperate to convince foreigners that Thai laws are enforced in a fair and impartial manner,” he said.
The country’s exports in December totalled US$11.61 billion in value, down for the second consecutive month by 14.55 per cent due to a decline in the farm and industrial product shipment, according to the Commerce Ministry.
Permanent Secretary for Commerce Siripol Yodmuancharoen disclosed on Wednesday that exports of agriculture and industrial products including fuel fell by 16.1 and 13.9 per cent respectively in the wake of the global economic meltdown.
Imports in December totalled $11.25 billion, down 6.5 per cent from the same month last year. It resulted in a trade surplus of $350.1 million.
Exports for the whole of 2008 totalled $177.84 billion, up 15.58 per cent from previous year as compared with the 12.5 per cent expected earlier.
Mr. Siripol said many earlier projections expected exports to grow 18-20 per cent in 2008, but the combination of the global economic meltdown and domestic political woes, led to the decline in export value in the last few months of the year. It resulted in the export growth of only 15.58 per cent, which is higher than targeted, but lower than some projected.
Imports for the whole of last year totalled $178.65 billion baht, up 27.6 per cent from the previous year. It put the country in deficit of $811.9 million, lower than estimated earlier at $3 billion .
For 2009, Mr. Siripol, said the government must attempt to boost exports because the global economy remains depressed.
Should there be a budget set aside to stimulate the export sector, he believed, export figures would remain positive for this year. (TNA)
