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Thailand: Firms report better purchasing power
Although private investment remains relatively low, the private sector has seen clearer signs of improving purchasing power this month.
Sanan Angubolkul, vice-president of the Thai Board of Trade, said yesterday the latest economic data from the Thai Chamber of Commerce showed a spending recovery in all regions since early June, boosted by rebounding farm products, growing exports and tourism.
The Commerce Ministry reported last week Thai exports jumped 13.2% year-on-year to UScopy9.9 billion (676 billion baht), the highest in more than four years, as the global economic recovery helped boost demand and shrug off the impact of the baht’s appreciation.
The rise in May exports was far above the 8.4% growth in April, driven by increases in demand for several products.
Agricultural and agribusiness exports rose 17.6% year-on-year in May, fetching $3.24 billion, helped by higher shipments of rubber, sugar, rice, vegetables and fresh fruits — particularly durian, shipments of which jumped 159.3% from the same period last year.
Exports of industrial products rose by 12.8% to copy5.6 billion, led by processed rubber, automobiles, electric circuits, computers and components, while jewellery remained in negative territory.
Nonetheless, the chamber maintained its export growth forecast at 3.5%, citing lingering concerns about low oil prices, volatile foreign exchange, terrorism and political uncertainty in the Middle East.
“One important indicator for Thai export growth is summer sales festivals in August in the US and Europe, and Christmas sales during the year-end,” Mr Sanan said. “The baht is expected to weaken if the Federal Reserve raises interest rates in the fourth quarter, which will be good for Thai exports.”
But he acknowledged private investment remains relatively low, as the private sector waits to see how effectively government spending stimulates the domestic economy.
“The government has announced myriad development projects including the Eastern Economic Corridor, but the private sector sees real spending has moved at a relatively slow pace,” Mr Sanan said.
In related news, the chamber yesterday teamed up with the Business Development Department to try and persuade 30 trade associations to conduct a strategic plan for business clusters.
Banjongjitt Angsusingh, director-general of the Business Development Department, said the pilot projects will start with four business clusters — tourism, lifestyle, logistics and property — to build up network linkages and upgrade business standards and management.
Source: http://www.bangkokpost.com/business/news/1276259/firms-report-better-purchasing-power