FTI Says Power Price Hike Will Affect Competitiveness

[snoop1130]

 

BANGKOK (NNT) - The Federation of Thai Industries (FTI) has suggested that a recent decision to hike electricity prices by 20% in early 2023 will push up inflation and undermine Thailand’s competitiveness just as the economy has started to gradually recover from the pandemic.

 

Citing higher fuel costs, the Energy Regulatory Commission said the power tariff for businesses will increase by 20.5% to 5.69 baht ($0.1640) per unit from January to April, with that of households remaining at 4.72 baht.

 

The FTI, which includes representatives from industry, banking and commerce, urged the government to delay the price hike as manufacturers would be forced to increase the price of goods.

 

FTI Vice Chairman Isares Ratanadilok Na Phuket said, "The hike will have a severe impact on people’s costs of living and the cost of the manufacturing and service sectors still in recovery."

 

Roongrote Rangsiyopash, President of industrial conglomerate SCG, meanwhile said the move will reduce Thailand’s competitiveness and attractiveness as power costs for businesses will be 50-120% higher than those in countries like Vietnam and Indonesia.

 

Surong Bulakul, Vice Chairman of the Thai Chamber of Commerce, said higher power prices could increase inflation to 3.5% next year, from 3% currently forecast, with interest rates on the rise.

 

The Bank of Thailand (BOT) said it would continue to raise rates for a while to help the economy and curb inflation.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG221226140035976

 

-- © Copyright NNT 2022-12-24

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Monthly car subscription with first-class insurance, 24x7 assistance and more in one price - click here to find out more!

[Isaan sailor]

Thailand competitiveness—going, going…

[Boomer6969]

The true dynamics of a competitive economy rests essentially on the shoulder of a "quality" workforce. 

 

Mai phen rai.

[nigelforbes]

8 minutes ago, Boomer6969 said:

The true dynamics of a competitive economy rests essentially on the shoulder of a "quality" workforce. 

 

Mai phen rai.

I would argue that it rests on the shoulders of a cost effective workforce. Almost everything is a trade off between cost and quality.

Edited December 26, 2022 by nigelforbes

[Cake Monster]

15 hours ago, snoop1130 said:

The FTI, which includes representatives from industry, banking and commerce, urged the government to delay the price hike as manufacturers would be forced to increase the price of goods.

The FTI represents every sector of the Economy.

If they say Goods will increase ( and presumably services as well ) then there is going to be a large increase in the cost of living, and therefore increased Inflation.

With Inflation published at roughly 6.5 % ( among the Worlds lowest ) , consumers can expect another 2 % at least to go onto this number, which as most are aware seems to be an artificial low considering the massive price rises in Food and Energy already experienced.

This will of course all play into the Countries ability to be competitive, and will many Companies already having to Invest in newer Plant to save Energy, the onus comes down to the Productivity per Head of the Workforce.

I am sure Vietnam, Cambodia and even Laos will be able to take up the increases in orders from those canceled in Thailand. 

Edited December 27, 2022 by Cake Monster

[mikebell]

1 hour ago, nigelforbes said:

I would argue that it rests on the shoulders of a cost effective workforce. Almost everything is a trade off between cost and quality.

I would argue it should involve tinkering with the Thai genome to eradicate the lazy bone.

[hotchilli]

18 hours ago, snoop1130 said:

The Federation of Thai Industries (FTI) has suggested that a recent decision to hike electricity prices by 20% in early 2023 will push up inflation and undermine Thailand’s competitiveness just as the economy has started to gradually recover from the pandemic.

Yep.

[zzaa09]

8 hours ago, Isaan sailor said:

Thailand competitiveness—going, going…

As in: Never was or allowed to be. 

Mai phen rai.