Bt500m shifted to revive firms in swamped estates

Capital-market associations are redirecting their Bt500-million fund to resuscitate flood-damaged industrial estates and quickly renew the confidence of local and foreign investors.
“Reviving industrial estates is an urgent issue. Our objective in setting up the fund is to restore investor confidence and industrial estates’ operations, in line with the master plan,” Finance Minister Thirachai Phuvanatnaranubala said yesterday. The fund was originally planned to ease the troubles of farmers and the general public.
Sompol Kiatphaibool, chairman of the Stock Exchange of Thailand, said the fund, by helping the six flood-hit industrial estates purchase flood barriers and pumps, would show to foreign investors the determination of both the public and private sectors help the estates return to normal operations as soon as possible.
The exchange, which is contributing half of the fund, held a meeting with Thirachai, Deputy Prime Minister Kittiratt Na-Ranong, the Thai Listed Companies Association, the Association of Securities Companies, the Association of Investment Management Companies, the MAI Club and the Thai Bond Market Association.
Jetro Bangkok, a branch of the Japan External Trade Organisation representing Japanese investment in Thailand, earlier urged the government to drain water out of flood-hit industrial estates quickly and protect the other industrial parks.
As the industrial estates are submerged, more than 1,000 factories have suspended production, and this has resulted in widespread supply-chain disruptions in the automobile and electronics industries.

Some 100-150 listed companies’ business has been affected by the floods, according to the Thai Listed Companies Association.

Chanin Vongkusolkit, president of the Thai Listed Companies Association, said most of the drowned factories were in the auto- and electronic-parts businesses and most had insurance.
The association has yet to assess their flood damage, but has asked them what it can do for them.
The earnings of all listed companies this year are expected to drop only slightly from last year, despite the flood crisis. Its impact will become more evident in their first- and second-quarter financial results next year.
The flood will hurt their business this year only for a while, but what is much more worrisome is the impact from the slowing global economy. It is hard to predict how much it will depress listed companies’ revenue and profits next year, Chanin said.