The private sector has repeated its calls for the Bank of Thailand to step up measures to tighten controls on foreign capital inflows.
"The central bank has to come up with immediate measures to curb foreign capital inflows, especially those that invest in bond and equity markets," said Pongsak Assakul, outgoing chairman of the Thai Chamber of Commerce (TCC).
The TCC, the Federation of Thai Industries (FTI) and the Thai Bankers' Association are members of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which met yesterday.
Mr Pongsak said the baht is now the strongest currency in Southeast Asia, where other central banks have already put in place measures to control foreign capital inflows.
He suggested the government raise withholding tax for the bond market, now at 15%, and introduce capital gains tax for the stock market, particularly for foreign investors.
Payungsak Chartsuthipol, chairman of the JSCCIB, said the committee plans to meet ministers and Commerce Ministry officials next Tuesday to discuss ways to ease the impact on exporters.
The food, garment, agriculture and furniture sectors, which are heavily reliant on local content, are expected to feel the pinch from the baht's appreciation, he said.
The baht has appreciated by up to 4.2% against the US dollar over the past three months, raising exporters' concerns that Thailand's exports _ forecast to grow by 8-9% by the Commerce Ministry _ may be derailed.
Vallop Vitanakorn, a vice-chairman of the FTI, said the central bank should look at the possibility of a policy rate cut to help rein in foreign capital inflows.
The Monetary Policy Committee on Wednesday kept the policy interest rate at 2.75% despite voicing strong concerns over the brisk trade in property and equities and a surge in bank credit.
Mr Vallop said Thailand's interest rate is attractive to foreign investors compared with relatively low rates of zero to 0.25% in the US, 0.75% in the EU, 0.5% in Britain and 0.1% in Japan.
He also urged the central bank to tighten the loan-to-value regime, particularly for second homes, to curb speculation in the property market.
But the Bank of Thailand yesterday denied it was considering measures to control the property sector.
"We have sent staff to give advice and exchange data with property developers. But this is one of our routines," said Somboon Chitphentom, head of the Prudential Policy Department.