FTI seeks urgent measures to support Thai industries hit by export slump

FTI chief Kriengkrai Thiennukul said businesses need urgent support because many have cut down working hours to prevent closure.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has said it is evaluating strategies to provide quick assistance to industrial groups affected by the slowdown in exports. These groups include steel, roofing and equipment, furniture, machinery and metal, textiles, footwear, jewellery and accessories, glass and ceramics.

The JSCCIB projects 0% to minus-1% growth in exports this year due mainly to the global economic slowdown and the Russia-Ukraine conflict, which has had an impact on global purchasing power.

Exports to Thailand’s regular trading partners like the European Union, the US and Asian nations have been declining for eight consecutive months as of May. This decline has adversely affected many industries, leading to production capacity adjustments to align with reduced orders, Kriengkrai said.

While many industrial groups primarily focus on export production, some companies have made changes to cater to the domestic market. Businesses are also trying to maintain factory capacity to prevent closures, as this would impact labour and stock maintenance. They have started reducing shifts and cutting overtime expenses, Kriengkrai said.

However, it is believed that industries will see an increase in orders in the fourth quarter of the year to cover demand during Christmas and New Year holidays. Exporters should also seek new markets to replace declining ones, particularly in the Gulf Cooperation Council (GCC), Asean and the Central Asian region, Kriengkrai said.

The Thai government, meanwhile, is urged to expedite the negotiation of the Thailand-GCC free trade agreement (FTA) to facilitate the expansion of Thai industrial product distribution abroad. This will help open the door to new markets and support the industry, Kriengkrai said.