Businesses seek funding to help diversify their exports
Businesses seek funding to help diversify their exports
VICHAYA PITSUWAN
The government should set up a fund to help exporters find new markets to offset the steepening downturn in developed economies, said the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).
”This funding should help cushion [the effect of] export order reductions as the Hamburger Crisis creates global economic repercussions and reduces spending worldwide,” said Pramon Suthivong, chairman of the Thai Chamber of Commerce and the JSCCIB.
He forecast that the full impact of the current financial crisis would start to become apparent in the next two to three months. Thailand could also expect exports in some sectors to contract next year enough to necessitate government assistance, he said after a committee meeting yesterday.
”We don’t know how deep the impact will be and which sectors will be most squeezed, but extra support is needed because the current financial crisis is extraordinary,” said Mr Pramon.
He added that the scale of required funding has yet to be established, but exporters should market more in neighbouring Asian countries, the Middle East, China and Africa.
New markets may not fully compensate for the expected reduction in sales to the United States, Europe and Japan _ which represent over half of the total export market _ but could help local business survive better, he said.Thai Bankers Association president Apisak Tantivorawong said assistance measures were feasible because Thailand had high foreign reserves.
JSCCIB representatives plan to make suggestions to Prime Minister Somchai Wongsawat when they meet tomorrow.
Federation of Thai Industries chairman Santi Vilassakdanont said business leaders hoped political tensions would not delay policies to assist business.
”The administration has been put on hold by political conflict, and businesses have had to fend for themselves. It’s time that they helped us,” he said.
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Tags: Asian Countries, Assistance Measures, Association President, Business Leaders, Commerce Industry, Committee Meeting, Downturn, East China, Economic Repercussions, Export Market, Financial Crisis, Government Assistance, Joint Standing Committee, Political Conflict, Political Tensions, Santi, Somchai, Thai Bankers, Thai Chamber, Thai Industries