Fast recovering Thai economy in first half 2012 foreseen

BANGKOK, February 29 (TNA) - A latest opinion survey on Japanese business operators in Thailand found that most respondents expected the Thai economy would pick up fast in the first half of this year, in the wake of the country's flooding crisis late last year. Setsuo Iuchi, head of an economic survey team of the Japanese Chamber of Commerce, reported the results of the economic outlook survey on Japanese firms running their businesses in Thailand Wednesday, acknowledging that the surveyed Japanese business operators foresaw Thailand's continual economic growth in the first half of 2012. Despite a recession in the second half last year due to the massive flooding, the Japanese business operators in Thailand insisted that they saw the Thai economy would improve fast in the first half of this year, with the majority of the respondents, or 64 per cent, predicting that all kinds of businesses in the Thai economy should recover, except textiles. Most of the respondents also said they expected their overall sales this year to rise by 76 per cent year-on-year. The survey found as well that the Japanese firms have increased their investment in plants and machines since last year, with part of their new investment projects concerning post-flood rehabilitation. The Japanese companies in Thailand revealed that they would export 46 per cent of their products to Japan; while the rest would go to Indonesia, India and Vietnam. The respondents also viewed Myanmar as a potential market. Of the surveyed Japanese companies, 56 per cent of them sourced raw materials within Southeast Asia and 48 per cent of them acquired their raw materials in Thailand. What they seriously demanded from the Thai government were political stability, national security and streamlined customs procedures. Some 83 per cent of the respondents urged the Thai government to provide reinsurance and to work out effective flood prevention plans immediately. Regarding impacts from Thailand's flooding crisis late last year, 85 per cent indicated they would proceed with their operations at old locations and some 8 per cent planned to relocate their plants to neighbouring Malaysia, Indonesia and Vietnam, with most of them being in the local electrical and electronic industries. In response to the Thai government's policy on a new minimum daily wage hike to 300 baht, 63 per cent of the respondents admitted that they would be heavily affected and would solve their problems by applying automatic production, reducing their workforces and raising product prices. (TNA)