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Baht volatility worries
labor-intensive exporters
The government should attempt to closely supervise the
baht to curb its volatility; otherwise the export of labor-intensive
products, including textiles, would be adversely affected, according to an
industry executive.
Suchart Chandranakaraj, President of the Association of
Thai Garment Industry, said that the textile export grew around 8-9% in the
first seven months of this year and that it was projected that the export of
the product would enjoy 6-7% growth for the whole year since the global
economic direction had improved. He added that the competitiveness of
exporters had been enhanced since the government began assisting them in
seeking new export destinations.
“However, what should be of concern now is the
continued appreciation of the baht. The situation, if allowed to go
unchecked, will have a negative impact on the export, particularly
labor-intensive products such as textiles. It will also reduce
competitiveness of other industries with those of foreign countries,”
Suchart warned.
Suchart projected that if the situation persists for six
months to one year, some textile operators might have to close business or
halt business expansion plans.
“Right now, the effect of the stronger baht may not be
clear. But if the baht strengthens and stays at 39 to the US dollar for a
while, some operators will suffer losses and have to close their
business”, he said. (TNA)
Thailand’s factory working conditions
to be upgraded
The Federation of Thai Industries (FTI) is teaming up
with the Thai Health Promotion Foundation (ThaiHealth) to upgrade working
conditions in the nation’s factories in a bid to boost the quality and
quantity of production and ensure better conditions for production plant
workers.
After signing an agreement with ThaiHealth, FTI President
Praphad Phodhivorakhun said, “Both organizations realized the importance
of upgrading the quality of life for factory workers. They are aware that
good physical and mental health of workers serves to boost production in
terms of quantity and quality, as well as having a beneficial impact on
workers and their families.”
Deputy FTI President Niphon Suraphongrakcharoen added
that FTI would offer support to the Quality for Work Life program in the
form of ideas, labor, venues and funding.
Niphon said that two committees will be set up to
determine the program’s goals, with factory standards expected to be drawn
up over the next couple of years. He also stressed that factories would not
have to incur any additional expenses in order that the standards be met.
Meanwhile, ThaiHealth Manager Dr. Suphakorn Buasai
expressed confidence that the program would act as an important strategy in
the sustainable improvement of factory working conditions, having a long
term impact on Thailand’s industrial competitiveness.
Under the program, workers will be encouraged to
participate in management decisions. Pilot studies will be carried out in
20-30 selected factories, while the two organizations will promote the
establishment of a network of factories across the country aimed at
improving working conditions. (TNA)
IMF suggestion on inflation brushed aside
The Bank of Thailand (BOT) and the National Economic and
Social Development Board (NESDB) have brushed aside a suggestion by the
International Monetary Fund (IMF) that the country raise the target
inflation rate from zero to prevent possible deflation.
Previously, the IMF had projected the Thai economy would
continue to grow this year. However, it said the government should closely
supervise the economic development since the financial and business sectors
remained engulfed with non-performing loans.
The IMF also suggested that the BOT consider increasing
the target minimum inflation rate from zero to stand in positive territory
because the inflation rate, if allowed to stay very low, would put the
economy under the pressure of deflation should there be any crisis.
BOT’s Governor M.R. Pridiyathorn Devakula said still
saw no need for the country to raise the target inflation rate.
Chakramon Phasukavanich, NESDB’s Secretary-General,
said that he did not think the Thai economy was on the path to deflation,
adding that inflation would increase automatically when the economy
continued to grow. “We should not accelerate consumption in an excessive
manner. The consumption will grow naturally when the economy expands,” he
concluded. (TNA)
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