Thai economy projected to grow 4.1- 4.5% in 2013

BANGKOK, Nov 18 (TNA) - The University of Thai Chamber of Commerce (UTCC) has projected that Thai economy would sustain growth between 4.1 – 4.5 per cent during 2013 if anti-government rally does not last long, said UTCC Rector Saowanee Thairungroj. The projection was made during a 30th seminar of members of the Thai Chamber of Commerce (TCC) nationwide while a major anti-government rally is scheduled to be held in the capital next weekend. Mrs. Saowanee said private business sector is worried about local political turbulence followed by global economy problem and natural disaster. Despite concerns, businessmen are optimistic that Thailand’s economy could sustain growth between 4.1 – 4.5 per cent if political protests end soon. Members of TCC also believed that government-sponsored populist programmes should not continue for too long as they could create excessive public debts while the government should also find measures to stimulate the private sector to be prepared for the ASEAN Economic Community, to be implemented in 2015. They urged the government to accelerate on strengthening trade relations with foreign countries, especially with neighbouring nations , and also solve corruption by government agencies. Provincial chambers of commerce also expressed concerns over a planned increase of minimum daily wage to 300 baht from next January 1 in the rest of 70 provinces in the country, saying that the rise would push up production costs, lower profits and many businesses may have to close. They asked the government to find ways in assisting small and medium enterprises (SMEs). Pumin Harinsut, vice chairman of TCC, said businessmen wanted the government to speedily set up a joint public/private working committee to study advantages and disadvantages and to assist those affected from the planned rise of daily minimum wage. Mr. Pumin said the Labour Ministry has already issued 27 clauses of assistance to private business but they still do not match with operators’ requirements, especially SMEs. He asked the ministry to review the measures. Thanawat Polvichai, UTCC’s director of Economic and Business Forecasting Centre, said the increase in the daily minimum wage would inject between 120-150 billion baht into the economic system. However, Mr. Thanawat said the increase may force between 100,000 to 200,000 workers to become jobless and a spending of a maximum of 50 billion baht disappeared and this would negatively affect gross domestic product of between 0.2 - 0.3 per cent. (TNA)