Saha Pathanapibul hopes to return to reasonable growth next year
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Saha Pathanapibul projects its business leaping by 5-8 per cent next year, from 3 per cent expected this year and only 1 per cent posted for the first nine months, as the economy shows signs of recuperating.
President Boonchai Chokwatana said yesterday that consumption had not fully recovered despite the improved domestic political climate and economy. However, the company has confidence that the economy will rebound in the coming year.
Consumers are still cautious with their expenses, as income distributions via state spending have not adequately trickled down to them, mainly farmers, who have very high household debts.
The company expects the situation to improve next year. It believes the government should continue with its economic stimulus measures. The main drivers of the company’s growth next year would continue to be washing and cleaning products.
As confidence perks up, consumption should also rise considerably by midyear. In the past six to seven months, consumers, especially those in the provinces, have tightened their purse strings.
Bangkok residents have more purchasing power, but the sluggish economy this year depressed consumer spending.
Consumer spending should revive late next month as New Year approaches and tourism picks up. The military regime has also launched measures to “return happiness” to Thais. All of these factors should temporarily boost consumption late this year and early next year.
However, the government should continue with its economic stimulus measures, which may vary from time to time, to keep consumer confidence adequately high to support demand, Boonchai said.
The company will step up its sales and marketing campaigns next year to stimulate consumer spending and protect its market share.
Exports account for only 1 per cent of Saha’s revenue, as it places more emphasis on domestic sales. However, the export ratio could rise under the Asean Economic Community.
Saha’s affiliated companies have some products that they ship abroad, or have the potential to serve overseas markets in the near future, he said.
