Thais warned to brace for escalating economic crisis

BANGKOK: -- Former finance and deputy prime minister M.R. Pridiyathorn Devakul on Wednesday warned the Thai public in all walks of life to brace for even greater impacts from the escalating worldwide economic crisis in the middle of next year.

Delivering the keynote speech on "Risks from the US Economic Crisis," he reiterated the US economic meltdown, which had spilled over to Europe and Japan, had an adverse impact on the three economic powers.

It had a domino effect on many countries around the world. So, he said, it is expected the economy would be in recession in the middle of next year.

M.R. Pridiyathorn said the economic recession would undermine Thailand's exports to the three countries where consumer purchasing power had declined.

In particular, the exports of IT products, electrical appliances, jewelry and durable goods would be adversely affected because people in three current major destinations might need to reduce spending on luxury goods and focus instead on necessities.

The former Bank of Thailand head said he sees Thai financial institutions remaining strong, but needing to lend with more prudence and caution.

The private sector should reduce stocks of products, refrain from expanding business excessively, supervise the business management, and maintain the employment in preparation for the escalating financial crisis.

Regarding bearish investment sentiment in the Stock Exchange of Thailand at current, he conceded foreign investors would from now on invest in the market in a small amount. They preferred to remit funds to heal parent firms overseas.

Should investors sell shares at a level of US$30 billion, he believed, the country's international reserve, which stays at $100 billion, would be enough to stave off the problems.

M.R. Pridiyathorn said the Stock Exchange of Thailand had been dominated and dictated by foreign investors for a long period. It had never boosted the strength of local investors.

Consequently, he sees a need to strengthen the position of local investors and enhance their role in the Thai bourse.

-- TNA 2008-10-30

from what i can see, 9/10 of thais are completly unaware of the Global Crisis !! ....

It is good that this man is sounding the warning.

I hope that his warning comes over more strongly in Thai than it does here in English. "Brace" is something you do to withstand a temporary shock that will pass, but for a permanent downturn you need to prepare.

When, three years ago, I looked at the future for the villages around here when Thailand would be reacting to this permanent recession for the "West", I foresaw the need to be pre-active.It is OK for firms that manufacture-for-export to be reactive when the demand for their product is increasing and ramp up after that is seen to be so. But, when the orders are going to cease to be flowing in, it is necessary to retrench ahead of the attack.

Anybody who wants my Journal article that describes my research can PM me to request it.

Be careful for investment ....

How about propoties should investors can buy cheaper

and possible for short gain ..

A few days after the article in English was posted on ThaiVisa, my partner heard that a million Thai workers would lose their jobs. This news is getting out to some working class Thais. But to be pre-active, they would have had to act already, or start acting right now, and I doubt that many will, here or abroad, if they even can.

A few days after the article in English was posted on ThaiVisa, my partner heard that a million Thai workers would lose their jobs. This news is getting out to some working class Thais. But to be pre-active, they would have had to act already, or start acting right now, and I doubt that many will, here or abroad, if they even can.

Looks like we can expect more PAD protests.

from what i can see, 9/10 of thais are completly unaware of the Global Crisis !! ....

I Think your underestimating that!!!!!

It was a typo he mean't 9/1000

....but for a permanent downturn......

When, three years ago, I looked at the future for the villages around here when Thailand would be reacting to this permanent recession for the "West"

Surely thou ain't serious??

Martin, when things slip for an extended period prices drop too, and there will come a time when those prices begin to start looking cheap, which is when people start buying again and recovery sets in.

It is good to be prudent and brace for the coming storm, but the permanent recession stories is just as absurd as the people believing prices will climb forever.

Sell on irrational confidence and buy on irrational despair (and its a little early for the latter).