Border trade becomes major mechanism to gear up Thai economy

BANGKOK, March 24 (TNA) - The Federation of Thai Industries (FTI) has suggested while domestic purchasing power is slowing down, border trade appears to be a major mechanism to effectively support the national economy. FTI Chairman Payungsak Chartsutipol told reporters on Monday that border trade can also create trade and investment opportunities, solve the shortage of unskilled labor in the industrial sector and effectively and thoroughly solve problems of prices, quantity and quality of raw farm materials. Payungsak acknowledged, however, that business operators want the government to resolve domestic political strife quickly and to provide them with more capital access. Payungsak pointed out that persistent domestic political problems have resulted in the lowest Thai Industries Sentiment Index (TISI) in 56 months or nearly five years, staning at 85.7 points in February 2014, down from 86.9 points a month earlier, as purchasing power in the agricultural sector and domestic consumption dropped and consequently sales in the industrial sector fell, while small and medium-sized enterprises (SMEs) lacked liquidity and production costs were rising. Meanwhile, Caretaker Deputy Prime Minister and Agriculture and Cooperatives Minister predicted that Thai agriculture should expand by 2.3-3.3 per cent this year, thanks partly to the global economic recovery and the depreciation of the Thai baht, which now boost Thailand's exports of farm products and encourage local farmers to increase their production although Thai agriculture is likely to grow by only 0.5 per cent in the first quarter of this year. Yukol noted that risk factors, however, remain, including impacts from the ongoing drought in the Thai North, Northeast and the central region and the Early Mortality Syndrome (EMS), which has greatly attacked marine prawn farming from late last year. (TNA)