BANGKOK, Dec 25 (TNA) - The current economic downturn in Thailand has forced nearly three out of four entrepreneurs to suffer a cash-flow problem, according to a survey conducted recently by University of the Thai Chamber of Commerce (UTCC).
UTCC vice-rector Saowanee Thairungroj said the survey conducted on 400 business operators between December 11-16 found that the cash flow problem resulted from declines in purchasing orders, higher production costs, financial institutions not extending loans and buyers failed to settle payments on purchase orders as they did not have collateral to submit to financial institutions.
Up to 35 per cent of the respondents wanted more loans in order to boost liquidity while most financial institutions were reluctant to offer such, according to Mrs. Saowanee.
The government must extend support to them through reduced interest rates, easing the process of loan extensions, extending payment settlements, finding ways to boost exports, boosting investor and tourism confidence, and activating the domestic economy, she said.
Meanwhile, Thanawat Palavichai, UTCC Economic and Business Forecast Centre director, said Thailand's economy in the fourth quarter of 2008 may contract more than 2 per cent and the government must urgently jump start the economy.
There is a possibility that the economy would remain contracted during the first quarter of 2009, said Mr. Thanawat. "It is difficult to depend solely on exports next year as they are expected to retreat and tourism business is probably the only business which could boost economy."
The Centre still forecasts that the 2008 economy would grow between 3.5-4 per cent but the figures could be revised later, he said. Next year's growth is estimated at 3.5 per cent. (TNA)
Business News : Last Update : 18:49:16 25 December 2008 (GMT+7:00)
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