Thai businesses call for urgent measures to curb strengthening baht
The private sector is urging the government to take immediate action, warning a stronger baht can cost the economy up to 130 billion baht in lost export earnings
The Thai private sector is calling on the government to quickly tackle the fast strengthening baht before it causes huge damage to the economy, especially the export sector.
A stronger baht can potentially cost the economy up to 130 billion baht this year, the warning said.
The Thai Chamber of Commerce (TCC) believes that with the baht appreciating to 33 to the dollar, the export of fresh and processed farm goods has already missed more than 50 billion baht in revenue.
If this trend continues until the end of the year, the export industry may lose up to 130 billion baht of revenue, accounting for about 1% of the country’s GDP, it added.
TCC chairman Sanan Angubolkul said at a meeting with private sector representatives on Monday that the TCC will soon hold talks with the Finance Ministry and Bank of Thailand to discuss the use of financial and monetary policies to tame the currency.
Other topics on the agenda are rising debts of households and SMEs as well as dropping purchasing power, he added.
Attending the meeting were representatives of seven business associations, namely the Thai Rice Exporters Association, Thai Broiler Processing Exporters Association, Thai Tuna Industry Association, Thai Pet Food Trade Association, Thai Frozen Foods Association, Thai Food Processors Association and Thai Hotels Association.
Sanan told business leaders that he hoped the discussion with the two entities would explore in-depth economic data and eventually reach a conclusion pointing in the same direction, which would help restore investors’ confidence.
“We believe the Bank of Thailand’s Monetary Policy Committee is on top of the situation, and will not let us make the same mistake as during the Tom Yam Kung crisis [in 1997],” Sanan added.
The TTC chairman went on to say that the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) will also submit a white paper on proposed measures to solve economic problems to the government.
The Thai baht rose to 32.91 against the greenback on Monday, appreciating 12% from the previous week, versus around 37 baht to the dollar in January this year.
