BANGKOK, Nov 5 (TNA) – Entrepreneurs in the business and industrial sectors will face greater difficulties in operating their businesses, particularly in the second half of next year, according to the Federation of Thai Industries (FTI).
Speaking at a seminar on "Looking at Crisis for Opportunities," FTI chairman Santi Vilassakdanont said the Thai economy next year would definitely expand less than that of this year with an expected rate of 4 per cent.
He said he had begun to witness a sharp decline in purchase orders for goods including chemical products, steel, and electronics from foreign countries.
Concurrently, local industries including construction and tourism signaled a clear slowdown and tended to lay off workers.
It is estimated that Thailand's unemployment would reach one million next year. Of this, 400,000-500,000
of the jobless will be new graduates, with the remaining half million who are now employed being made redundant.
Mr. Santi said he was concerned with the country's small and medium-size enterprises (SMEs), particularly in provincial areas.
They had low costs and faced difficulties in seeking loan applications from commercial banks. Some might have to shut down their business.
Although the government will increase Thailand's budget deficit by Bt100 billion to apply funds to stimulate the economy, it would nonetheless have to spend the budget prudently and with caution, because the economic conditions are quite volatile.
Regarding the expectation that the Bank of Thailand (BoT)'s Monetary Policy Committee would cut the policy interest rate to stimulate the economy like that of the countries around the world, he said the move would not yet produce an effective result.
What he wanted the central bank to do is to supervise the foreign exchange rate to rein in its volatility, he said. (TNA)
Business News : Last Update : 08:57:33 5 November 2008 (GMT+7:00)
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