Two new government measures issued to help SME businesses hit by wage hike

The Thai government has initiated two measures to help Small and Medium Enterprises (SMEs) affected by the Bt300 daily minimum wage.
Prime Minister’s Office Minister Niwattumrong Boonsongpaisan said after chairing the first meeting of a committee to help SME businesses that many factors are impacting business, including the eurozone debt crisis and the US economic slowdown, combined with domestic factors such as the January 1st nationwide minimum wage hike and the baht appreciation.
Niwattumrong said state agencies have insufficient information regarding the impact on SME business, citing that the Labor Ministry has been officially informed that only 60 private business operators were affected.
He said the committee wants more details on the number of affected businesses and what kind of help they need.
The committee issued two measures to deal with the problems, starting with opening more channels of communication for business operators to apply for the government’s assistance.
He said a centre to assist SME business will open under the Office of the Prime Minister. Those who seek help could send the information to www.sme1111.opm .go.th from Monday, or to the Office of Small and Medium Enterprises Promotion and other concerned state agencies from the end of this week.
The second measure, according to Niwattumrong, is to establish two sub-committees; the first to survey the impact and problems affecting SME businesses, while another group will analyze the problems and propose solutions.
He said once the center compiles the data on the needs of the affected businesses, he will present it for consideration of Prime Minister Yingluck Shinawatra and Deputy Premier/Finance Minister Kittiratt Na Ranong.
Commerce Minister Boonsong Teriyapirom said today that apart from the new center under the PM’s Office, upcountry, operations will be supervised by the governors who will gather information from provincial branches of the Federation of Thai Industries (FTI) and provincial chambers of commerce where affected businesses can apply for help. (MCOT)

 

Deputy PM Kittiratt blows top on threat to BoT governor

Deputy Prime Minister Kittiratt Na-Ranong vehemently put the brakes on rumors that political pressure has been applied on Bank of Thailand (BoT) Governor Prasarn Trairatvorakul to resign.
Kittiratt, concurrently finance minister, said bluntly, “Please stop talking about it. Stop spreading the [false] news.”
Unconfirmed reports have been circulated that the government was trying to unseat Prasarn amid conflicts with the BoT over the country’s directives about the policy interest rate and action on the sharp appreciation of Thailand’s baht currency.
Prasarn insisted earlier that he did not feel pressured regarding Kittirat’s letter to BoT Board Chairman Virabongsa Ramangkura asking him to supervise the operations of the central bank and the Monetary Policy Office (MPO).
The finance minister wanted the MPO to reduce the policy interest rate and take action on the inflows of foreign capital and the strengthening Thai baht.
Prasarn said he has always taken the government’s policy into consideration in making any decision. (MCOT)

Thailand’s January Consumer Confidence Index hits record high for 16 months

Thailand’s Consumer Confidence Index (CCI) in January rose for the third consecutive month and hit its record high since October 2011, according to a survey conducted by the University of Thai Chamber of Commerce (UTCC) Economic and Business Forecasting Center.
Thailand’s CCI in January stood at 81.7, up from 80.2 in December last year, center director Thanawat Polvichai said.
The Consumer Confidence Index in all categories rose and bounced back to its normal level, the same as the level before the country was hit by devastating floods in 2011.
The confidence index for the overall economy rose to 72.1 from 70.6 and confidence index on future income touched 100, the first time in 16 months, up from 98.3 in the previous month thanks to improved local and global economy.
Consumption, investment, exports and tourism, which have been improved and the minimum wage rise support overall purchasing power.
He said the Bank of Thailand’s 2013 Gross Domestic Product growth projection at 4.9 percent and over 5.5 percent projected by the Office of the National Economic and Social Development Board is a positive factor while the policy interest rate remains at 2.75 percent.
The Thai stock market rose 82.27 points in January and exports recovered significantly in December 2011, supporting economic growth and consumer spending in buying new cars and travel. As a result, he said the GDP in the first half of this year is likely to grow 4-5 percent. (MCOT)