BANGKOK, Jan 28 (TNA) - Some Japanese companies operating in Thailand viewed the Thai economy was on a downward trend and that the Japanese firms may cut their production in Thailand and relocate their Japanese staff if the situation worsens, according to a survey conducted by the Japanese Chamber of Commerce (JCC) in Thailand.
Munenori Yamada, economic research committee chairman of the Japanese External Trade Organisation (Jetro) in Bangkok, said 341 Japanese firms in Thailand out of 1,285 companies surveyed in the last two months of last year experienced a gloomy picture of the Thai economy in the second half of 2008 and predicted a similar scene for the first half of 2009. This was mainly attributed to the global financial crisis, particularly in the United States and domestic political turbulence in Thailand.
The survey on the business outlook of Japanese companies in Thailand showed the majority of those surveyed foresaw the industries that were likely to be severely affected the automobile and electrical appliance industries, particularly auto parts suppliers for both parent companies in Japan and companies in Thailand.
If the situation worsens, the Japanese investors may opt to cut their production and reduce operational costs or relocate Japanese staff to Japan, according to Mr. Yamada, who is also president of the Japan External Trade Organization (JETRO), Bangkok office.
The survey found that 71 per cent of respondents expected that their overall operating performance would decline reflecting the gloomy business climate in the first half of 2009. The figure was up from 59 per cent in the second half of 2008.
This would also affect the management of the companies as they would face fierce competition in the market as well as risks from foreign-exchange fluctuations, increasing raw material prices and labour shortage, Mr. Yamada said.
As for factors expected to impact the Thai economy in coming years, the Japanese investors specified political disorder, economic slowdown in Japan, the United States and Europe, stagnation of investment and domestic consumption due to economic slowdown are their main concern.
Thailand's months-long political stalemate that culminated in the seizure of Suvarnabhumi and Don Mueang airports by anti-government protesters, although it did not cause a significant impact directly on Japanese firms, but had a quite serious psychological impact on Japanese investor confidence. Those surveyed said they wanted no repetition of the incidents.
Among what the Japanese companies wanted to see from the Thai government were the continued appropriate policy implementation, the development of more efficient public utilities, improvement of traffic management in central Bangkok and the metropolitan region, as well as having and improved plan for human development and improve skills. (TNA)
Business News : Last Update : 22:14:55 28 January 2009 (GMT+7:00)
|
