Thailand is currently undergoing a period of political transition as it prepares to usher in a new government. Recognizing the challenges presented by this transition, the Thai National Shippers’ Council (TNSC) has indicated its eagerness for the swift establishment of a new administration, in order to ensure continuous growth of exports throughout the second half of the year.
TNSC Chairman Chaichan Chareonsuk said the organization retains its forecast for this year’s export value growth at 0-1%, owing to a multitude of risk factors. These include potential delays in the formation of the incoming government, which could potentially hamper export promotion plans for the second half of the year and the overall Thai economy.
Geopolitical tensions have only added to economic uncertainties, potentially impacting all sectors and notably energy prices. Global interest rates meanwhile persist at high levels, contributing to economic deceleration and higher borrowing costs for businesses. In addition, Thailand’s competitiveness is being challenged by inflated product costs, largely due to elevated electricity prices. Furthermore, a surplus in stock held by Thailand’s trading partners has led to a reduction in orders.
Chaichan conveyed TNSC’s appeal for an expedited government formation process, which would allow the new administration to spearhead export and economic strategies. Additionally, the council urges the Bank of Thailand to consider revising its policy interest rate to alleviate the burden on SMEs. The TNSC is also calling on the public sector to effectively manage energy prices in order to reduce production costs within the manufacturing sector.
The TNSC chairman reported that Thailand exported goods valued at 92 billion dollars between January and April of this year, representing a 5.2% decline compared to the same period last year. (NNT)
