Private sector urges MPC to accelerate the creation of a balance in the baht after the baht has appreciated rapidly and continuously. It was revealed that exporters are very worried, especially small ones, such as food and agricultural product exports that have already lost 10%, fearing that small businesses will go bankrupt nationwide and that foreign tourists will disappear.
Mr. Kriangkrai Thienukul, President of the Federation of Thai Industries, talked about the impact of the baht's exchange rate fluctuations. Within 3 months, the baht has appreciated by 10%, the strongest in 19 months. When compared to other countries, it is found that during the period when the baht is weak, the baht is weaker than other countries, it is called weak. But when it is strong, it is stronger than others, which is a problem from the country's structure, which must be solved in the long term. After the Fed cut interest rates for the first time in 4 years at a rate of 0.50%, the baht has become even stronger compared to the dollar. It is now below 33 baht per dollar. If it continues like this, the baht may be at 30-31 baht per dollar. Of course, the baht's strong appreciation does not have a positive effect on Thailand's export sector.
This year, our main economic engine is exports. Today, we are at a disadvantage to our neighboring countries in many ways, whether it is electricity costs, energy costs, high interest rates that cause high financial costs, fewer FTAs ??than other countries, and especially during this period when the baht is strong, which makes Thai exporters worse. Some categories of products have already lost a lot of baht, such as food and agricultural products, which have lower margins than innovative products. Today, we have already lost 10%. Exporters are worried because the products that were previously exported are at a loss. Therefore, there has been a discussion about adjusting product prices. However, if product prices are adjusted, countries or trading partners may change their minds to buy products from neighboring countries instead. Therefore, the Federation of Thai Industries would like to ask relevant agencies, especially the Monetary Policy Committee (MPC), to help balance the baht in all aspects, not too stro ng or too weak, so that exporters can compete.
'The private sector talks about the truth, the issues that they encounter every day. It is a matter of life and death for businesses, so we have to look at the short, medium and long term. Today, small exports are damaged, and all SMEs in the supply chain will be destroyed. Therefore, we must quickly create a balance that is appropriate for the reality so that exporters can compete. Not only exports in the tourism sector are affected. When the currency is strong, they will not have fun traveling because they have to face the problem of expensive goods. Even if everything is good, if it is expensive, it is not fun. Therefore, in the big picture, we will not interfere, but in the small picture, we would like to help entrepreneurs so that they can recover and become stronger,' said Mr. Kriangkrai.
Regarding the 400 baht minimum wage increase nationwide, Mr. Kriangkrai said that the FTI and the Federation of Thai Industries insisted on asking the government to consider it in detail because they had already said that they wanted it to follow the mechanism of the sub-tripartite committees in every province. At present, the figures have been released, which are acceptable to all parties. Even though employers have to pay more, it is still acceptable. As for employees, it is more convenient.
'We agree with the wage increase, but please pay according to skills, which will develop human resources and elevate Thai workers to be on par with other countries. Today, half of the 46 industrial groups have already upgraded themselves to escape the low wages. At the same time, it was found that these industrial groups lack skilled workers, even though they pay high wages. Therefore, the government should do two things at the same time: upskill and reskill the existing workers. Currently, there are 30 TCB businesses investing in Thailand, and in the future, there will definitely be 100 companies, which reflects that in the future, there will be a demand for highly skilled workers, and wages will be high as well,' said Mr. Kriangkrai.
Source: Thai News Agency