Government to curb export slide

Published: 3/07/2009 at 08:27 PM
Online news: Breakingnews

The government is aiming to prevent exports from plunging more than 10% this year, with new export stimulus measures including tax rebates on imports for export-oriented production due this month.

"We expect the plans for cutting import taxes on some raw materials to help exporters reduce costs to go before the cabinet for approval some time after Finance Minister Korn Chatikavanij gives them a nod next week,'' said Commerce Minister Porntiva Nakasai.

Mrs Porntiva opened Made in Thailand 2009 on Friday, the 22nd edition of the event featuring 4,699 booths and more than 2,500 companies. The fair at Muang Thong Thani runs to July 12.

The Commerce Ministry plans to call a meeting soon with state banks including Export-Import Bank of Thailand and the SME Bank to discuss ways to ease lending procedures and export guarantees, said Mrs Porntiva.

Exporters complain of limited access to state banks' loans to improve their liquidity, as most banks demand collateral for lending.

Banks will be asked to allow exporters to use their inventories and stocks as loan collateral, said Mrs Porntiva.

"In August, we invited foreign investors to negotiate with Thai exporters under the Thailand Best Friend programme to visit and buy local products. We expect the programme will boost purchase orders and raise exports,'' she added.

In a related development, the government has agreed in principle to allow exporters who bid successfully in the controversial sale of 2.6 million tonnes of second-crop rice and who have already paid to take their rice, said Mrs Porntiva.

About 100,000 tonnes of rice have already been paid for by exporters.

The cabinet last month halted rice sales for fear of losses, even though deals had already been signed with some companies.

A fresh auction will be announced next week after the Foreign Trade Department, which is authorised to handle the sales, has come up with directions, said Mrs Porntiva.

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LookMoo

Discussion 3 : 04/07/2009 at 07:20 AM3
Thailand must understand that they are not the only country in Asia that offer investing opportunities. But Thailand is one of the few do who offers "give me your money and your business but stay out of Thailand" program..

It's so far from the Malaysian alluring "your second home program" that Thailand can't compete.
Zoowatch

Discussion 2 : 04/07/2009 at 03:20 AM2
Devaluing the Baht won't help with increasing the export much. There's simply a sharp drop in demand for goods worldwide due the global recession. Making goods cheaper at this time will only increase sale marginally, while still hurting the import/manufacturing industry.

Also, devaluing the Baht makes importing raw materials used for manufacturing exported good more expensive and less competitive. Artificially undervalue the Baht puts strain on the Central Bank. Also, it creates additional inflationary pressure on the economy (gas prices will go up). Meanwhile, funds will naturally flow abroad, resulting in poorer liquidity among local banks. What Thailand needs is a stable, managed float currency, not an undervalued Baht.

I guess Mr. Bank is just an expat receiving his income in US$ and is just wishing that the value of Baht will fall so that he can afford more luxuries while staying in Thailand. That's all.
Banker

Discussion 1 : 03/07/2009 at 09:09 PM1
OH come on..the only way exports are going to increase is to de-value the baht

Thus making Thai product cheaper than other Countrys + create jobs so more tax is paid..it's basic economics

Daily this Gov show what fools they are..better they keep quiet

LookMoo

Discussion 3 : 04/07/2009 at 07:20 AM3

Thailand must understand that they are not the only country in Asia that offer investing opportunities. But Thailand is one of the few do who offers "give me your money and your business but stay out of Thailand" program..

It's so far from the Malaysian alluring "your second home program" that Thailand can't compete.

Zoowatch

Discussion 2 : 04/07/2009 at 03:20 AM2

Devaluing the Baht won't help with increasing the export much. There's simply a sharp drop in demand for goods worldwide due the global recession. Making goods cheaper at this time will only increase sale marginally, while still hurting the import/manufacturing industry.

Also, devaluing the Baht makes importing raw materials used for manufacturing exported good more expensive and less competitive. Artificially undervalue the Baht puts strain on the Central Bank. Also, it creates additional inflationary pressure on the economy (gas prices will go up). Meanwhile, funds will naturally flow abroad, resulting in poorer liquidity among local banks. What Thailand needs is a stable, managed float currency, not an undervalued Baht.

I guess Mr. Bank is just an expat receiving his income in US$ and is just wishing that the value of Baht will fall so that he can afford more luxuries while staying in Thailand. That's all.

Banker

Discussion 1 : 03/07/2009 at 09:09 PM1

OH come on..the only way exports are going to increase is to de-value the baht

Thus making Thai product cheaper than other Countrys + create jobs so more tax is paid..it's basic economics

Daily this Gov show what fools they are..better they keep quiet

Government to curb export slide