22.01.09 Government urged to brace for persistent export slowdown
Source: TNA
BANGKOK, Jan 22 (TNA) - The government must prepare a contingency
plan to ease impacts 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 needs to come up with the plan to cushion
the impacts of the world economic meltdown in that period.
The government must give a 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.
He said the export sector should not be allowed affected by the
global economic slowdown without any assistance. Its plunge would have
a repercussion on the industrial and labour sectors.
In addition, he suggested, the government pay much attention to the
expenditure budget because it could serve as a key drive for the
economic growth.
He said the government must realise a need to run the budget deficit
of 400-500 billion baht more in 2010. So, a question is where it could
mobilise funds 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 public confidence in consumption and investment.
Simultaneously, 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 reduced by 16.1 and 13.9 per cent respectively in the wake of the
global economic meltdown.
Imports in December totaled $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 entire 2008 totaled $177.84 billion, up 15.58 per cent from last year against 12.5 per cent expected earlier.
He said many had earlier projected exports to grow 18-20 per cent in
2008. But when there are the global economic meltdown and domestic
political woes, the export value had declined in the last few months of
this year.
It resulted in the export growth of only 15.58 per cent, which is higher than targeted.
Imports for the whole of last year totaled $178.65 billion baht, up
27.6 per cent from the previous year. It put the country in deficit of
$811.9 million, which is lower than estimated earlier at $3 billion
.
For 2009, Mr. Siripol said the government needs to attempt to a
certain extent to boost exports because the global economy remains not
out of the woods.
Should there be a budget set aside to stimulate the export sector,
he believed, export figures would remain positive for this year. (TNA)
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