Govt Aid Sought For Small Firms

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Govt aid sought for small firms

By PETCHANET PRATRUANGKRAI

THE NATION

The private sector last week called for the government to consider measures to save small businesses as well as employees as a priority group, because they cannot stand on their own.

Influential private associations also urged the government to come up with immediate assistance for that group, which was the hardest hit by the demonstrations.

They also suggested the remedies focus on every area of impact to bring normalcy back to the group.

Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said the government should first restore business around the Rajprasong area, where a wide range of businesses are concentrated, from hotels to SMEs to retail shops.

The FTI will hold its monthly meeting today to summarise the demonstration's impacts and finish up a proposal to the government.

"We want the government to assist SMEs and workers as its priority as they lack liquidity from being unable to trade for months. The government may help find distribution channels for them to release stock," Payungsak said.

The government should provide career-training programmes so workers can generate their own income.

"We agree with the government to pay cash to whoever was hit by the political violence, but the payment should cover all," he said.

Another urgent task of the government was to restore the country's image to revive confidence among foreign investors, he said.

The private sector also wants to see a budget from the government to help businesses recover from the Bangkok disaster, but don't want to see any change in politics as yet.

Dusit Nontanakorn, chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said the country was not ready for a change in politics. Now, it was the time to try to resolve problems and ensure the turmoil was really over.

"It is the time to reconcile and resolve all damages and losses. The government must ensure that the turmoil will create a minimum impact on the export sector, as it is the only sector that can drive the economy right now," he said.

Other engines of economic growth have been totally destroyed, including tourism, investment and domestic spending.

After resolving all problems from the crisis, the government could then think about political restructuring and a future strategy for the political and economic system, he added.

The country's three most powerful private sector bodies - Board of Trade, Federation of Thai Industries and Thai Bankers Association - are scheduled to meet next week to estimate losses and prepare remedial plans for affected businesses.

Recommendations from the meeting would be proposed to the government.

Pornsilp Patcharintanakul, deputy secretary-general of the Board of Trade, said the board was estimating losses by value and volume in order to seek remedial measures for each business.

The priorities the government had to focus on were providing flexibility and giving credit to businesses that have been damaged.

Next, it must prepare soft loans for enterprises to rebuild or renovate their businesses as well as provide financial support for affected businesses.

Banks must also extend the debt repayment period by six months or a year to give time for those businesses to recover.

The government must provide compensation for employees that have lost their jobs from companies that were burned down or had to close down.

The government should accurately restore confidence and ensure that the disaster would not hold up the export sector.

Government agencies as well as each firm must urgently send messages to foreign traders and investors that Thailand would keep doing business as usual and the crisis would not affect any export or import transactions.

In the near future, the government should conduct many roadshows to bring back confidence and promote tourism, investment and commerce, he added.

Somkiat Anuras, vice chairman of the Thai Chamber of Commerce, said it was not a suitable time for any change in government.

"The government must concentrate on remedial measures as its priority rather than changes in politics. Primarily, the government must inject more money - from Bt5 billion to Bt30 billion - to help affected businesses," he said.

The chamber estimates that the arson attacks in the city have caused more than Bt100 billion in losses.

The government must provide both financial and monetary measures for businesses.

Exports for this year would grow lower than the expected 14 per cent - by only 10-12 per cent - due to the impact from the mess, he added.

Chookiat Ophaswongse, honourable president of the Thai Rice Exporters Association, said the government must focus on a reconciliation plan and its reunification roadmap to ensure peace.

The government may follow its plan to hold an election on November 14 in order to bring stability to the country, he said.

-- The Nation 2010-05-24

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[obie123]

"The government must provide both financial and monetary measures for businesses."

I thought that financial measures and monetary measures were the same?? Is there a difference between financial and monetary??