FTI -TCC to Meet BOT Solve Baht Strength Hit Thai Export/GDP Down.
10-7-2019–Today after four hours intense meeting of Joint Standing Committee of Commerce Induatry and Banking, Mr.Preedee Daochai President of Thai Banking association unveiled that JSCCIB readjusted Thailand 2019
export growth rate estimation to -1.0%-1.0% from 3.0-5.0% of last estimation and readjusted GDP growth rate estimation to 2.9-3.3% from 3.7-4.0% of last estimation, believe that even government has economic stimulation in the second half of this year, it might not be able to compensate the result of reducing export in the slowing down world economic situation and stonger Baht, while foresee inflation rate to be remain at 0.8-1.2% as it was forecasted.
By the way Mr.Preedee foresee that slow establishing of new government it might take three months delay to start spending and invest government budget, but the second half government spending will not be less than last year.
Mr.Suphan Monkonsuthee Chairman of Federation of Thailand Industry (FTI) agree that Bank of Thailand has potential and should urgently implement some more clear measure to weaken Baht, which has yet seen any.
“Baht could be considered as The World most strength currency as it was 6% stronger as of year to date and has not seen any currency stronger so far, while the average export margin of OEM is just 3-5% , how export price can compete with Vietnam which its currency only 0.2-0.3% stronger in the same period.”
FTI and TCC both expecting Baht currency to stand at around 32 Baht/USD in order to make Thailand’s export able to compete in the market.
“Thailand has a lot internation financial reserve, FTI considered Monertay Policy Comittee should reduce policy rate as soon as possible, promoting using Baht as export means of payment, including others measures Bank of Thailand has potential to solve baht strength and fluctuation, unless the small and new export enterprise will not be able to compete in the export market” according to FTI chairman.
According to JSCCIB, Bath strength and fluctuated over almost all trade partners and competitors deducted Thailand competitiveness and brought about shrinking export and inbound tourist.
FTI and Thai Chamber of Commerce
(TCC)have the same intention to study more clearly to prepare information and make appointment with Bank of Thailand to discuss for clear measures to solve too strength and fluctuated Baht.
FTI chairman expected to meet with BOT for currency sustainability management next week.
TCC also want to meet with BOT to solve Baht uncompetitive level as soon as possible, according to Mr.Kalin Salasin TCC chairman.
Refer to labor wage rate raising issue, JSCCIB had made the proposal regarding stipulating Thai Labour Quality Development Policy, consisted of
1) Raising wage rate must be made under the resolution of Tri Party Provincial Wage sub-committee.
2)Enhancing labour efficiency and labour skill.
3)Increasing man power replacement.
After new government appointed and report its policy, JSCCIB will have the white paper proceed to new cabinet to ensure clear direction for government to enhance good cooperation, competitiveness, good governance., etc that in line with national strategic plan.
