Business gurus see limited impacts on Thailand from Brexit

BANGKOK, June 21 (TNA) - The Federation of Thai Industries (FTI) and CIMB Thai Bank say even if Britain voted to leave the European Union (EU) on June 23, negative impacts on Thailand would be either limited or short-lived. FTI Chaiman Chen Namchaisiri stressed in Bangkok on Tuesday if the majority of British people voted for Brexit, its impacts on Thailand should be small because Bangkok's trade with London accounts for only 2 per cent and with EU accounts for 9-10 per cent. The FTI chief noted, however, that Brexit would slightly affect the value of pound and euro. Echoing similar views, Amornthep Chawla, head of CIMB Thai Bank's research, told journalists, meanwhile, that the Brexit process would take two years and impacts on Thailand would be small and last less than a month, as British travellers have formed only 3 per cent of international visitors to Thailand. Amornthep acknowledged that adverse impacts might happen to Thai processed chicken, as Britain is the biggest market, pointing out that the value of processed Thai chicken exports to the British market amounted to 167.7 million US dollars during the first four months of this year. Besides, exports of Thai automobile and parts, electronic, gems and jewellery, which depend significantly on the British and other European markets, could also be more affected by Brexit. Pending the Brexit referendum, Amornthep assessed that money and capital markets would be highly fluctuating because investors were turning to safe assets, including gold and the Japanese yen, and that Brexit should not inspire other member states to leave the EU. Meanwhile, Isara Vongkusolkit, Chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand, foresaw a brighter prospect in the Thai economy in the second half of this year because farmers would have stronger purchasing power, thanks to the rising prices of rice, rubber, sugarcane and oil palm. Isara revealed that the sales of motorcycles and automobiles also rose 20 per cent last month and the disbursement of government budgets increased by 19 per cent in April, while the government's investment has gone up by 10-11; so, there would be more money change hands in the second half of this year. Isara predicted the Thai economy should, thus, expand by 3.3 per cent in the second half of 2016 and 3.2-3.5 per cent on average throughout this year. (TNA)