Worries over rising petrol prices and inflation
Published on April 8, 2008
Top business leaders have expressed concern that unrelenting increases in petrol prices and higher inflation will weaken consumer confidence.
"We cannot say right now whether our business will be affected badly or not, but we need to do our best," said Boonkiet Chokwattana, president of ICC International, the manufacturing arm of the giant Saha Group.
Given the many media reports on skyrocketing petrol prices, consumer sentiment has been hurt, while their purchasing power has also been reduced.
ICC's sales target for 2008 is Bt13 billion, up 10 per cent from last year, when sales were flat.
Boonkiet said there were as yet no signs of growth for this year's first quarter.
Tesco Lotus senior vice president Darmp Sukontasap said it was unfortunate the country suffered both political and economic instability last year.
After the general election, some optimism and confidence on the part of investors and consumers had returned.
But despite some improvements, the economy is facing new challenges from a slowdown in the US economy, a weak US dollar and rising oil prices.
"I see inflation as the most serious threat to consumers and the economy at this point," Darmp said.
"Although people do not feel less secure about their jobs, they do not feel they are earning enough to make ends meet either. This could cause a slowdown in private spending, which could lead to a slowdown in manufacturing, investment and, ultimately, economic growth. When consumers can buy less with the money they earn, this may also result in a decline in household savings," he said.
The government must ensure that public and private investment recovers quickly while problems from external factors and inflation can be management competently.
He said it would be tough to achieve a growth target of 5-5.5 per cent in gross domestic product this year, because investors, manufacturers and consumers lack confidence.
Meanwhile, Central Pattana president and CEO Kobchai Chirathivat believes the overall economy could grow 6 per cent this year, as targeted by Deputy Prime Minister and Finance Minister Surapong Suebwonglee.
"The situation should be better than last year," he said, adding that the possibility of a political party dissolution was the only key risk factor for 2008.
Despite the US recession, Thai exporters have adjusted themselves by diversifying into other growing markets, such as Europe, South America, Africa, India and China.
Kobchai said in the industrial sector, local manufacturers had also quickly adjusted themselves to cope with skyrocketing oil prices. They have focused on reducing production and business costs.
"Although the government has yet to inject money into the economic system, I feel the economic situation is improving at a certain level. People have greater confidence, they've started spending money," said Kobchai.
Kwanchai Rungfapaisarn
The Nation
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Published on April 8, 2008
Top business leaders have expressed concern that unrelenting increases in petrol prices and higher inflation will weaken consumer confidence.
"We cannot say right now whether our business will be affected badly or not, but we need to do our best," said Boonkiet Chokwattana, president of ICC International, the manufacturing arm of the giant Saha Group.
Given the many media reports on skyrocketing petrol prices, consumer sentiment has been hurt, while their purchasing power has also been reduced.
ICC's sales target for 2008 is Bt13 billion, up 10 per cent from last year, when sales were flat.
Boonkiet said there were as yet no signs of growth for this year's first quarter.
Tesco Lotus senior vice president Darmp Sukontasap said it was unfortunate the country suffered both political and economic instability last year.
After the general election, some optimism and confidence on the part of investors and consumers had returned.
But despite some improvements, the economy is facing new challenges from a slowdown in the US economy, a weak US dollar and rising oil prices.
"I see inflation as the most serious threat to consumers and the economy at this point," Darmp said.
"Although people do not feel less secure about their jobs, they do not feel they are earning enough to make ends meet either. This could cause a slowdown in private spending, which could lead to a slowdown in manufacturing, investment and, ultimately, economic growth. When consumers can buy less with the money they earn, this may also result in a decline in household savings," he said.
The government must ensure that public and private investment recovers quickly while problems from external factors and inflation can be management competently.
He said it would be tough to achieve a growth target of 5-5.5 per cent in gross domestic product this year, because investors, manufacturers and consumers lack confidence.
Meanwhile, Central Pattana president and CEO Kobchai Chirathivat believes the overall economy could grow 6 per cent this year, as targeted by Deputy Prime Minister and Finance Minister Surapong Suebwonglee.
"The situation should be better than last year," he said, adding that the possibility of a political party dissolution was the only key risk factor for 2008.
Despite the US recession, Thai exporters have adjusted themselves by diversifying into other growing markets, such as Europe, South America, Africa, India and China.
Kobchai said in the industrial sector, local manufacturers had also quickly adjusted themselves to cope with skyrocketing oil prices. They have focused on reducing production and business costs.
"Although the government has yet to inject money into the economic system, I feel the economic situation is improving at a certain level. People have greater confidence, they've started spending money," said Kobchai.
Kwanchai Rungfapaisarn
The Nation
Discuss
Add this link to...
Tell a friend
Bury
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