Committee calls for action against strong baht to improve economic performance

By The Nation

 

 

The office of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is concerned by the performance of the Thai economy in the second half of 2019.

 

The office fears that the lack of stimulating factors and an ever-stronger baht may lead to lower economic expansion than previously targeted.

 

JSCCIB President Preedee Daochai, told the press today (September 4) that the Thai economy in the second half of 2019 remains in a weak condition as seen from shrinking exports across all sectors except gold. “As a result, we are seeing a slowed expansion in industrial manufacturing, investment and private consumption,” he said. “Although tourism is increasing compared to last year, that’s partly due to last year’s base being rather low.”

 

Preedee added that the Thai economy in the rest of the year will be under a lot of pressure from various factors. “The strained global economy due to the US-China trade war will continue to affect us, as well as the trade dispute between Korea and Japan, Brexit issues and the stronger baht. These factors will slow down our exports and possibly tourism in the rest of 2019.”

 

Meanwhile, domestic consumption is likely to be affected by drought and the floods in the North and Northeast, he added.

 

“The government’s economic stimulus package and crop price guarantee policy may help a bit, but these policies usually take time before we can see substantial economic impact,” said Preecha.

 

“JSCCIB is concerned that a lack of stimulating factors and [as well as] the stronger baht may eventually lead to lower-than-expected economic expansion in 2019,” he said. “Moreover, if the US Federal Bank decides to reduce interest rates further, it will adversely affect Thailand’s competitive advantage in exports and investment. Therefore, the government must take care of the problem of the strong baht as soon as possible.”

 

Source: https://www.nationthailand.com/news/30375825

 

-- © Copyright The Nation Thailand 2019-09-04

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11 minutes ago, webfact said:

The office of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is concerned by the performance of the Thai economy in the second half of 2019.

Misrepresentation or what! That's never a standing committee, all three of them are sitting down.

 

11 minutes ago, webfact said:

“Although tourism is increasing compared to last year, that’s partly due to last year’s base being rather low.”

Is that what's called a back-handed compliment?

yes for christ sake, i just realized im running a deficit

month after month, i decided to quit smoking/cakes/cappuchino to rectify my running deficit. (and health and appearance)

i also nodded yesterday my currency exchange has never been this rotten in all this time ive been living here,

which now totals nearly 2 decades.

Devalue the baht ! leo leo

Simple; a strong baht means I have less to spend when I transfer in weak pounds, so I can't spend as I used to do.  Multiply this by the number of ex-pats/their tourist friends & family = lots of local businesses are going to suffer.

35 minutes ago, webfact said:

The office of the Joint Standing Committee on Commerce, Industry and Banking........

Blah, blah, blah blah!

There is a saying that........"an original idea can never come from a committee"

And Thailand is managed and controlled by committees and many of them have the one and only same Chairman.

No single person ever seems to make a decision, possibly because of the fear of loss of face.

Thailand Central Bank should lower interest rates and indicate they would lower interest rates further if conditions do not improve. That is what most other countries have done.

what is the guy on the right wearing... are we now seeing super hero costumes?

14 minutes ago, losworld said:

what is the guy on the right wearing... are we now seeing super hero costumes?

I sort of like the colour, a bit iridescent in a manly way.

Surely everybody knows the golden rule ? Those who have the gold make the rules.

9 hours ago, losworld said:

what is the guy on the right wearing... are we now seeing super hero costumes?

I think he's trying to out-Prayut Prayut.

Strong baht is not the problem.  The weakening of all western currencies is.  The biggest scam the world has ever seen is the USA convincing everyone to keep their currencies weak.

 

It amazes me countries worry that their money buys too much stuff.

9 hours ago, CPH said:

Thailand Central Bank should lower interest rates and indicate they would lower interest rates further if conditions do not improve. That is what most other countries have done.

This is keynesian nonsesnse.  

All I know is that my morning corn flakes and milk are now very expensive compared to a few years ago when I convert the cost to pounds sterling.

 

Any improvement on exchange rates is VERY welcome..

 

I like corn flakes.

16 minutes ago, NightSky said:

All I know is that my morning corn flakes and milk are now very expensive compared to a few years ago when I convert the cost to pounds sterling.

 

Any improvement on exchange rates is VERY welcome..

 

I like corn flakes.

funny how you can appreciate homely things such as corn flakes when ounce for once they seem to be the price of gold. what I miss is cheese, and for about 10 AU$ I get a few slivers here, my treat for the month. when I visit home I gouge on cheese and put on 5kg in a week. soon goes though once back on the rice and noodle diet..... corn flakes was quite low on my list, but I understand

15 hours ago, webfact said:

“JSCCIB is concerned that a lack of stimulating factors and [as well as] the stronger baht may eventually lead to lower-than-expected economic expansion in 2019,” he said. “Moreover, if the US Federal Bank decides to reduce interest rates further, it will adversely affect Thailand’s competitive advantage in exports and investment. Therefore, the government must take care of the problem of the strong baht as soon as possible.”

How about reducing the massive spending for the military....???

75 to the pound next week baby.....

15 hours ago, brokenbone said:

yes for christ sake, i just realized im running a deficit

month after month, i decided to quit smoking/cakes/cappuchino to rectify my running deficit. (and health and appearance)

i also nodded yesterday my currency exchange has never been this rotten in all this time ive been living here,

which now totals nearly 2 decades.

Devalue the baht ! leo leo

Quit smoking?.......Thats just horrible.....I hope Soi 6 is not on the chopping block.....

4 hours ago, yourauntbob said:

Strong baht is not the problem.  The weakening of all western currencies is.  The biggest scam the world has ever seen is the USA convincing everyone to keep their currencies weak.

 

It amazes me countries worry that their money buys too much stuff.

Being a American....I think its a great idea...

18 hours ago, bluesofa said:

Misrepresentation or what! That's never a standing committee, all three of them are sitting down.

 

Is that what's called a back-handed compliment?

I think that’s called “making the best of a bad situation”

7 hours ago, yourauntbob said:

Strong baht is not the problem.  The weakening of all western currencies is.  The biggest scam the world has ever seen is the USA convincing everyone to keep their currencies weak.

 

It amazes me countries worry that their money buys too much stuff.

But nobody wants to buy your  stuff !

7 hours ago, NightSky said:

All I know is that my morning corn flakes and milk are now very expensive compared to a few years ago when I convert the cost to pounds sterling.

 

Any improvement on exchange rates is VERY welcome..

 

I like corn flakes.

Have you seen what Nigella can do with corn flakes?

"Next question."

"When will Baht be low?"

"After I close escrow on my villa in Italy. Next question."

 

20 hours ago, mikebell said:

Simple; a strong baht means I have less to spend when I transfer in weak pounds, so I can't spend as I used to do.  Multiply this by the number of ex-pats/their tourist friends & family = lots of local businesses are going to suffer.

I think tourism and exports are a much bigger piece of the pie. The money the expats bring in is probably a drop in a bucket. Of course tourism and exports also suffer from the high baht.

9 hours ago, NightSky said:

All I know is that my morning corn flakes and milk are now very expensive compared to a few years ago when I convert the cost to pounds sterling.

 

Any improvement on exchange rates is VERY welcome..

 

I like corn flakes.

Breakfast cereal has always been expensive here,because it was all imported,

when Kellogs opened up their factory here,I expect prices would be  more

realistic ....but the prices never changed.

regards worgeordie

19 hours ago, CPH said:

Thailand Central Bank should lower interest rates and indicate they would lower interest rates further if conditions do not improve. That is what most other countries have done.

Yes, Is what other countries have done but how many actually had an inmprovement?

 

it only encourage more borrowing, since people want to get more while rates are low.

 

lower rates does nothing except steal money of savers and investors

On 9/4/2019 at 2:54 PM, webfact said:

The office fears guarantees that the lack of stimulating factors and an ever-stronger baht may will lead to lower economic expansion than previously targeted.

words like 'may' should be banned

9 hours ago, jastheace said:

funny how you can appreciate homely things such as corn flakes when ounce for once they seem to be the price of gold. what I miss is cheese, and for about 10 AU$ I get a few slivers here, my treat for the month. when I visit home I gouge on cheese and put on 5kg in a week. soon goes though once back on the rice and noodle diet..... corn flakes was quite low on my list, but I understand

I do the same. Just looked on Morrison's website in the UK - Cathedral cheddar, mild to extra mature on offer £2.00 for 350 grammes. 211 baht a kilo. It's available here at 212 baht at a Thai national supermarket. Only problem is that it's 200 grammes for that! Up 500%!!!

1 minute ago, Lemonltr said:

I do the same. Just looked on Morrison's website in the UK - Cathedral cheddar, mild to extra mature on offer £2.00 for 350 grammes. 211 baht a kilo. It's available here at 212 baht at a Thai national supermarket. Only problem is that it's 200 grammes for that! Up 500%!!!

Corn flakes - go to Makro and buy the Makro 'Aro' brand, quality the same as any mainstream corn flakes, comes in a big clear plastic bag, much cheaper than kelloggs in a box.

21 hours ago, mikebell said:

Simple; a strong baht means I have less to spend when I transfer in weak pounds, so I can't spend as I used to do.  Multiply this by the number of ex-pats/their tourist friends & family = lots of local businesses are going to suffer.

locals are already suffering but the pain will increase.... saw a small business guy bought brand new toyota truck, this morning saw him ridding the motorbike, asked about the new truck, he said returned to dealer, can't pay credit, shop not making money, no farangs

the damn economics of Thailand are very complicated, exports are hurting. tourism is not booming, etc., and yet not moving on depreciating the baht to increase their competitiveness, China's currency is depreciated on a daily basis to cop with lack of exports but Thailand says it will take some time to adjust