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7,000 new jobless in 2008
Thailand’s sluggish economy, along with declining purchase orders, have
forced 85 firms to lay off 7,223 employees between the beginning of 2008 to
July 16, a senior labour Ministry of Labour said last week.
Arthit Isamo, director-general of the Labour Protection and Welfare
Department, said of the total of the 85 firms, 52 closed their doors
permanently, causing 4,287 workers to become jobless. Most of the firms were
medium-sized and employed less than 300 workers each.
Arthit said most of the companies which collapsed were involved in producing
furniture, ornamental products and textiles.
Another 31 enterprises with nearly 15,000 employees overall are expected to
close their businesses after they have suffered losses, cutting production,
and consolidating operations such as transferring sister companies to
headquarters facilities, he said.
Not all are losses however. Currently a total of 160,338 jobs are available
nationwide and some of the jobless may be able to land in one of these
positions, Arthit said.
In an attempt to soften worries among jobless workers amid the skyrocketing
cost of living, Labour Minister Uraiwan Thienthong said many new enterprises
would be established that could absorb the affected workers. (TNA)
Toyota still optimistic
about diesel-engine vehicle sales
Giant Japanese carmaker Toyota remains optimistic that total
sales of diesel-engine vehicles will improve this year despite a decline in the
first half of the year upon concerns over substantially higher diesel fuel
prices.
Toyota Motor Thailand president, Mitsuhiro Sonoda, said he believed that
diesel-driven vehicles were still popular as they consume less fuel than benzene
engines and their performance efficiency is higher. He added that the production
of pick-ups in Thailand remains as high as two-thirds of Thailand’s total
vehicle output.
Sonoda said that many carmakers had expressed concern over the decline in total
sales of diesel-engine vehicles in the first half of this year, but he believed
that sales would recover in the second half of 2008 if consumers properly
understand the utility of the vehicles, diesel prices begin to drop, and the
government-initiated plan to reduce the excise tax becomes effective.
According to the latest revision of the vehicle sales target, despite the
economic uncertainties, auto sales in Thailand this year are expected to
increase 3 per cent to 650,000 units. Of this, 220,000 units are cars, up 27 per
cent from last year, and 385,000 units are pick-up trucks, down 5 per cent.
(TNA)
Investment w/BoI privileges in 2008 to grow less than targeted
Private investment in Thailand with promotional privileges from the Board of
Investment (BoI) in 2008 is now estimated at Bt300 billion only, less than
half of the originally planned target, according to Chakkamon Phasukvanich,
permanent secretary for industry.
Speaking to a seminar, Chakkamon said Deputy Prime Minister and Industry
Minister Suwit Khunkitti had earlier projected private investment with BoI
privileges this year to be at least Bt600 billion. But several
organizations, including the ministry, have forecast that the investment
amount would be only about half that figure due to a number of negative
factors, including the sluggish economy, rising inflation, the sub-prime
lending crisis in the US, soaring oil prices and the appreciation of the
Thai baht, he said.
Despite these problems, foreign investors have not moved their production
bases from Thailand during the first half of 2008, said Chakkamon.
Foreign business interests, especially the Chinese, still find Thailand an
attractive investment destination, he said. However, existing investors are
asking the Thai government to help solve a number of problems facing
business operators, including Thailand’s domestic political turbulence and
the lack of coordination among concerned government agencies, for example
regarding energy saving measures.
Chakkamon said he believed more investment could be seen in the second half
of this year if political problems ease and government policies become more
transparent, but he said that it would still be less than the corresponding
period of 2007.
On rising domestic oil prices, he said his ministry would provide knowledge
to about 10,000 small- and medium-sized enterprise operators nationwide on
ways to reduce production costs and save energy.
Major industrial operators wishing to change machinery could also seek
financial help from the ministry as it would ask financial institutions to
provide loans to them at 3 per cent less than the prevailing interest rate,
he added. (TNA)
Cambodian traders refusing to accept Thai baht, sluggish trade at border
Trade in the key Thai district of Aranyaprathet, which
borders Cambodia, remained sluggish last weekend amid rumours that Cambodian
traders were refusing to accept the Thai currency, the baht, due to fears that
tensions along the border regarding a disputed zone adjacent to an ancient
temple could escalate.
Fewer than half the normal number of Cambodian traders crossed into Thailand’s
normally lively Aranyaprathet market last Saturday amid an atmosphere of
inactivity, while the volume of Thai tourists visiting Cambodia’s 12th-century
Angkor Wat and Angkor Thom tumbled to less than 100 from about 1,000 persons
during prior weekends.
Cambodian traders with a sense of nationalism refused to accept the baht at all,
saying they preferred the Cambodian currency, the riel, after selling their
wares at the Aranyaprathet market.
A Cambodian market vendor, a woman who crosses the border every day, said
Cambodian traders were being searched by motorcycle-taxi drivers upon returning
to Cambodia’s Poi Pet town, at the other end of the short bridge, and were
scolded and told that they did not love the nation if Thai currency was found
inside their wallets.
Thailand’s Burapha Task Force stationed along the border area said Cambodian
traders still used the Thai baht in daily trade, except for small vendors who
preferred the riel out of concerns that Thailand would close the border.
Security at Thai government offices near the border have been tightened on fears
that fighting between both sides could break out. (TNA)
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