Monday, October 27, 2008

Thai Chamber of Commerce.warns exporters

Chamber warns exporters

PHUSADEE ARUNMAS

The global financial crisis will dent Thailand's export economy in both traditional key markets and new destinations such as the Middle East, warns the Thai Chamber of Commerce.

"The coming crisis is really the big problem (for the Thai economy)," said Dusit Nontanakorn, the chamber's vice-chairman. "The government's current economic stimulus measures are not potent enough to address and curb the possible impact. They sound like using aspirin to treat cancer.

"The impact on the country's tourism has already been felt. We expect exports will start falling from next month onward for the United States, Europe and Japan. New markets will follow course, especially the Middle East as the oil price falls. The real impact on the Thai economy will become visible after November."

Businesses are urged to prepare for the coming crisis by shifting their production strategy, he said.

"As consumption freezes, those engaged in producing high-end products need to shift to medium-end to stay afloat," said Mr Dusit. "Those producing low-end products could get into big trouble, as they will directly compete with low-cost products from China."

Pramon Sutivong, the chamber's chairman, said the impact would likely be more severe than expected, but the effect on industries would vary by sector.

"Unlike Thailand's financial crisis in 1997, this new crisis will affect all the real sectors," he said.

To help industries through the crisis, the chamber is preparing to appraise the impact on all business sectors, both in the short term of three to six months and the long term of up to two years.

The results will be released Nov 13.

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