Bangkok, The FTI maintains its forecast for the Thai economy in 2024 to grow at 2.8-3.3%, indicating a slow recovery in exports. because domestic demand is weak Emphasizing the need to stimulate the economy further Accelerate budget disbursement and reduce interest
Mr. Kriangkrai Thiennukul, Chairman of the Federation of Thai Industries (F.T.I.), chaired the meeting of the joint committee of three private sector institutions (FTI), saying that the FTI maintains its estimate of the economic expansion rate (GDP). ) at 2.8-3.3%, as well as exports expected to expand by 2-3%. Inflation is expected to be at 0.7-1.2% and admits that The economic situation is at high risk. and there are structural limitations in Thailand that cause exports to recover slowly and unevenly. Moreover, domestic demand is still weak. The Thai economy therefore needs additional stimulus from both fiscal policy to accelerate budget disbursement and other stimulus measures. and monetary policy, which will be in the form of reducing the pol
icy interest rate or reducing FIDF fees as has been done in the past. This will quickly reduce the financial burden on households and businesses.
The Thai economy is at risk of lower growth due to structural problems affecting production and exports. Industrial production, which accounts for one-quarter of the Thai economy, is facing problems and cannot be exported to its full potential. Many important Thai export products include combustion vehicles, hard disk drives, and plastic products. Slowing down from both short-term and long-term factors.
Products that export well are low-complexity products, such as car tires and processed meat. In addition, some products face competition from imported products from abroad. Therefore, the Thai manufacturing sector needs to adapt quickly to be in line with changing world trends. and manage the supply chain to be more flexible.
Mr. Kriengkrai said that geopolitical problems are likely to intensify in the future. Countries that are clearly divided will turn to trade
with countries that have conflicting geopolitical positions. Therefore, Thailand must find opportunities to gain trade advantages. By selecting strategies that are “specific” to the context of each production sector in each export market. This depends on the production capability and intensity of competition in each industry.
The FTI is aware of the problem of SME entrepreneurs who have potential but still do not have access to credit in the system. Therefore, it is proposed that the government consider adding a mechanism to support entrepreneurs to enter the system. To create a database for considering loans according to market mechanisms. By promoting the registration of juristic persons By exempting corporate income tax for 5-7 years to give entrepreneurs time to adjust. Ready to adjust conditions and increase resources of the Small Industry Credit Guarantee Corporation (TCG) to be in line with the current situation. and cooperation with all relevant sectors So that entrepreneurs can have more access to c
redit in the system.
The FTI would like to thank the government for giving importance to solving the problem of inferior quality products being dumped into the Thai market. The Ministry of Finance is currently considering measures to collect Value Added Tax (VAT) for online purchases of imported goods not exceeding 1,500 baht in order to create equal competition among domestic entrepreneurs. However, in order to achieve integration in correcting the lack of quality products throughout the system. The government should consider adjusting the conditions for using free zone benefits as well as increasing the strictness of detecting falsely declared products imported through customs checkpoints. By supporting effective tools for scanning products As well as accelerating public relations to create public awareness of the effects of using substandard products.
Source: Thai News Agency