Chatchai feels the heat

Chatchai feels the heat

Commerce minister confident government measures will improve economy

People buy goods at Bangkok’s Klong Toey fresh market, which offers low prices on raw meat, seafood, farm produce, clothing and kitchenware. The commerce minister wants people to shop more prudently. PATIPAT JANTHONG
People buy goods at Bangkok’s Klong Toey fresh market, which offers low prices on raw meat, seafood, farm produce, clothing and kitchenware. The commerce minister wants people to shop more prudently. PATIPAT JANTHONG

Gen Chatchai Sarikulya believes he is no different from his compadres when it comes to work and public expectations.

He admits he is under immense pressure as commerce minister with responsibility for people's cost of living, prices of goods and exports.

"Over the last six months, we [the government] have worked very hard under great pressure and expectations from the people," says Gen Chatchai, who was engaged in finance throughout his career with the Royal Thai Army, including a spell as president of the Royal Thai Army Radio and Television Station (Channel 5).

"We have also worked very closely with state officials in tackling economic issues and called a meeting every week to monitor and evaluate the assignments and measures as well as work out back-up plans in case the key measures don't live up to expectations."

However, he concedes many policies have yet to get off the ground, particularly those related to the cost of living, falling farm prices, tepid exports and the overall economy against the backdrop of a slower-than-expected global economic recovery.

Gen Chatchai, who was a classmate of Prime Minister Prayut Chan-o-cha at military pre-cadet school, vows to increase farmers' productivity, reduce production costs, promote more organic farming and create extra off-season jobs for farmers.

He also intends to accelerate disposal of rice stocks that now stand at 18 million tonnes, mainly via government-to-government deals and general auctions; address the cost of living, particularly prices of consumer goods; and increase exports this year by at least 4% by using measures to boost shipments, stimulate border trade and make the best use of free trade agreements.

The government is also to proceed with free trade talks with foreign partners, particularly through the Asean+3 (China, Japan and South Korea) and Asean+6 (Asean+3 and India, Australia and New Zealand) frameworks, and revise trade-related laws, particularly the Foreign Business Act, Trade Competition Act, Intellectual Property Act, Anti-Dumping Act and Retail Act, in a move to streamline trade and build up investors' confidence.

"Against all the odds, we remain positive that Thailand has yet to become a famine state," Gen Chatchai says.

"The overall economy is not that bad, as indicated by the latest report on inflation, which improved on a month-on-month basis. People's lowered spending is partially because of relatively high household debts incurred from generous policies such as the first-time car buyer programme."

Thailand's inflation based on consumer prices fell for the third consecutive month in March to a 66-month low, due mainly to weak global oil prices.

The rate shrank by 0.57% year-on-year last month, slightly steeper than the 0.52% fall in February, but headline inflation increased by 0.17% from February.

In the first three months of this year, consumer prices fell by 0.5% year-on-year due mainly to a decline in non-food items and beverages, which dropped by 1.7%.

The ministry last month cut its inflation projection to a range of 0.6% to 1.3% from an earlier forecast of 1.8% to 2.5%, based on oil prices of US$50-60 a barrel, an exchange rate of 32-34 baht to the US dollar and GDP growth of 3-4%.

Amid the current hardship, Gen Chatchai urges consumers to become more prudent and smart when shopping.

After Songkran, the Commerce Ministry will launch an application for mobile phones that offers information about discounts and affordable products at participating outlets .

The ministry is also asking for cooperation from modern trade outlets and manufacturers to cap their product prices.

To curb profiteering by retailers and wholesalers, the ministry recently initiated a volunteer programme under which university students nationwide help monitor product prices and inform the ministry when any irregularities are found.

The government will also continue the Thong Fa (Blue Flag) scheme of selling low-priced products in crowded communities and promote the expansion of low-cost department stores as part of efforts to help tackle the rising cost of living.

The first low-cost department store is expected to open in May, with the number set to rise to 14 outlets this year and 142 over the next five years.

"We believe most of the product prices will not increase this year except for seasonal fresh food, vegetables and fruits," Gen Chatchai says.

The commerce minister foresees an uphill battle on the export front after exports shrank by 4.8% year-on-year to $34.5 billion in the first two months of the year. He blames the world's stuttering economic recovery, failing oil prices and decreasing farm prices.

He is hopeful exports will recover to become positive in the second half in keeping with the world's improving economy and oil prices, economic recovery in the US and blooming border trade.

Directors of 62 Thai trade centres in 46 countries and territories have been assigned to evaluate export performance and the risk factors facing shipments as well as find ways to tap into new markets.

The government is also committed to working more closely with the private sector to explore new export destinations and address obstacles.

 "Thailand's exports from now on should focus not only on cost reduction and productivity but also quality improvement and competitiveness enhancement," Gen Chatchai says.

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