Shippers' council now predicts flat export growth this year

TNSC president Nopporn Thepsittha said export value in February totalled US$17.24 billion (Bt560 billion), a decrease of 6.14 per cent from the same month last year. With value for the first two months falling by 4.82 per cent to $34.48 billion, the council now projects flat growth for 2015.

The continuing sluggishness of the global economy and weak crude-oil prices have hurt export prices for refined oil and related products, chemicals, plastic pellets and agricultural produce. Aggravating these factors is the current value of the baht. The TNSC believes the Bank of Thailand should implement measures to curb the currency’s volatility.

The council plans to meet with Deputy Prime Minister MR Pridiyathorn Devakula on April 9 to discuss ways to support Thai exports.

The TNSC would like the government to concentrate its export promotions on those with strong potential to be in the top five in the global market. These include food and beverage, textiles and garments, jewellery and accessories, and furniture and components.

Also important are businesses in the service sector, which account for 34.8 per cent of Thailand’s gross domestic product. This sector is higher than the manufacturing sector, which has dropped to 29.6 per cent.

It is necessary to have clear export-management strategies, while more effort should be put into developing a quality workforce, research and development, and creation of value-added features in businesses in the service sector.

More attention is needed to develop trade and investment to help drive the Thai economy, such as finding new export markets via roadshows, establishing foreign business partnerships, and investment in goods-distribution centres in special economic zones to boost border trade. Enhanced trade with southern China and India should also be a priority, the TNSC says.

TNSC Vice President Wallop Vitanakorn said export value in the first quarter of this year was likely to contract by 5 per cent, with flat growth in the second quarter, 3-per-cent growth in the third quarter and 2-per-cent growth in the final quarter of 2015. Hence, the earlier 1.5-per-cent export-growth projection is unrealistic, and flat growth is probably the best that can be hoped for.

Meanwhile, yesterday Bank of Thailand yesterday announced Thailand’s economy on February 2015 continued to recover at a slow pace.

Domestic private spending was flat as consumers and businesses remained cautious about spending. Fiscal spending was also flat while merchandise exports were affected by weak demand from China and Asean countries.

Nevertheless, the tourism sector continued to expand well and was the main driver of the economy. On the stability front, low global oil prices led to negative inflation for the second consecutive month and current account surplus for the fifth consecutive month.