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AFG looks at boosting business in tough times
Mike Usher (standing left) and James Beeson
(seated right)
address the AFG meeting at BHP.
Dr Iain Corness
Thinking outside the box was James Beeson’s motto at the Automotive
Focus Group (AFG) meeting on April 24 held at the Bangkok Hospital Pattaya’s
seminar room. James, who works for Kulthorn Metal Products, one of the
larger Thai manufacturers of compressors, presented that the current crisis
also offers opportunities if you listen to the customer and respond to his
demands.
The second speaker, Mike Usher from the Thai German Institute International
Service (TGI-ITS), gave a presentation on their service offering. This
includes technical matchmaking, technical start-up support, search and
training of technical staff on various levels and cross-cultural management
training. An interesting development was presented by Chantana from Hemaraj
who currently works with the TGI-ITS to establish a campus at Eastern
Seaboard Industrial Estate.
The meeting was well attended with 25 members and guests and many of them
used the chance to network and discuss current issues after the
presentations.
The Automotive Focus Group web site offers a synopsis of the talks at
http://afg-thailand.blogspot.com
The next meeting with be held on May 22. Chris Bruton of Dataconsult a very
well known political analyst will have a joint presentation with Dr. Chris
Baker on “What are the political risks for existing and new investors in
Thailand”.
Entrepreneur confidence index up 3.8 pts to 41.6 in March
Thailand’s entrepreneur confidence index in trade and
services for March this year increased to 41.6 from 37.8 in February, said Pak
Tongsom, acting director of the Office of Small and Medium Enterprises
Promotion.
The rise in March was seen in every business sector, especially in wholesale,
retail and services whose indices advanced to 41.7, 40.5 and 42.7 respectively,
from 38, 36.9 and 38.7 the previous month, said Pak.
Confidence indices on the national economy and towards own business prospects
also jumped to 22.1 and 34.7 in March from 17.9 and 25 respectively in February,
he said.
Pak said the increases, particularly in the wholesale, retail and service
indices was attributed to the government allocating a budget to stimulate the
economy which was already entering the economy, and on heavy spending by people
in the run up to the Songkran festival, or Thailand’s traditional New Year.
The confidence index for small and medium enterprises in the first quarter of
2009, however, slipped to 40.8 from 44 projected for the second quarter, said
Pak.
The decline was attributed to negative factors including an ongoing sluggish
economy, local political unrest and an increase in oil prices which has pushed
up production costs and the cost of living. (TNA)
BoT: Govt’s economic campaign will benefit economy
Plans by the government of Prime Minister Abhisit Vejjajiva to invest Bt1.43
trillion on the second round of its economic stimulus campaign aimed at
spurring growth will benefit the economic system, Bank of Thailand (BoT)
Governor Tarisa Watanagase said Thursday.
Mrs. Tarisa told participants attending a seminar that it now depends on the
government to determine whether it can actually invest in the projects
agreed by the Cabinet on Wednesday.
If the investment in the economic stimulus campaign is implemented as
planned, it could help cushion the contractions in the Thai economy to only
3.5 percent as projected by the government earlier, she said.
On concerns that the government must borrow Bt800 billion to finance the
projects considered in the campaign, Tarisa said it will not hurt the
private sector as its level liquidity now exceeds Bt1 trillion while
businesses have slowed investment due to the sluggish economic climate.
Tarisa said that political unrest in Thailand is a major factor eroding
investor confidence, especially that of foreign investors. Foreign direct
investment (FDI) entering Thailand is between US$600-700 million per month
now, down approximately US$100 million from before, which is still “not
worrisome” as it is in line with the global economic slump.
If domestic politics return to normal and the world economy improves, FDI
will return to Thailand as before, she said.
Regarding local commercial banks still reluctant to lower lending interest
rates - despite the central bank cutting its key interest rate by 25 basis
points to 1.25 percent on April 8 in an attempt to help boost Thailand’s
economy, Tarisa said banks should consider cutting lending rates without
lowering deposit rates.
It is now an appropriate time for banks to cut their rates as the demand for
loans has declined, she said. (TNA)
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