Electrical exports expected to be flat

 
“However, exports will be the same as last year if most manufacturers have achieved full production at their plants by the third or fourth quarter of this year,” Somboon Hortrakul, director of the Electrical and Electronics Institute, said yesterday.
In the first two months of this year, exports in the sector dived 13.9 per cent year on year to US$7.2 billion (Bt222 billion).
Exports of such products are facing a global recession, especially in the United States and Europe, which are crucial markets, he said.
China, which is another major market besides Asean, is also expected to stagnate this year because of its own economic slowdown.
“The government’s increase of the minimum wage has also had a strong impacted on local businesses, especially small and medium-sized enterprises, as well as some of the manufacturers located in flood-affected areas,” Somboon said.
“The wage hike will also lead to other consequences, such as a higher social-security burden and add-on costs to local manufacturers.”
Only about half of the flood-hit factories have resumed normal operations as many of them delayed restarting production pending settlement of insurance claims and installation of new machinery. They still have not reached maximum capacity.
By next quarter, most manufacturers will have reactivated their plants and will be running them at nearly 100 per cent, he said.