Industry Ministry urges businesses to adjust to stronger baht

BANGKOK: -- The Ministry of Industry has sent a letter to businesses across the company warning them to make urgent adjustments in response to the strengthening of the Thai currency.

A report from the Office of Industrial Economics suggests that the rapid appreciation of the baht over recent weeks, from Bt41.5 to the dollar to Bt39.5, will have an inevitable impact on the import and export of Thai goods and services.

Today Industry Minister Pongsak Ruktapongpisal warned that industry operators, whether exporters or importers, would have to make urgent adjustments to cope with the fast changing situation.

Forecasts suggest that 11 sectors could be badly affected by the baht’s appreciation, namely gemstones and jewellery, fabrics and clothing, medicine and medical equipment, metal products, petrochemicals, office and household goods, electrical and electronic goods, construction materials, plastics, shoes and leather goods, and food and animal feed.

“While some sectors will benefit from cheaper raw material imports, exports will become more expensive. Operators need to draw up risk control measures, with advance foreign currency purchases and a diversification of export markets. They could cut reliance on the US market, and try instead to penetrate markets such as China, the Association of Southeast Asian Nations (ASEAN), Japan, Taiwan, Hong Kong and South Asia”, Mr. Pongsak said.

He also acknowledged that exchange rate fluctuations were making operators wary of drawing up business plans, but stressed that the Bank of Thailand was aware of the problem and was closely monitoring developments to ensure that volatility remained at a minimum.

Calling on Thai companies to emulate those in Japan and Taiwan, he said that it was possible to weather exchange rate fluctuations by making careful adjustments.

--TNA 2004-12-12

Is the US the only place that Thailand exports to? If not the government would only have to look at the decline of the Baht against the other major currencies over the last 3/4 years; and they would see that they're not doing too badly.

In Toxin's world only two countries worth anything exist,the US and Thailand....