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BoT asks private sector to use caution in business dealings in 2010
Despite signs of improvement in the global and Thai economies in 2010, the
Bank of Thailand (BoT) has warned the private sector to use caution when
doing business deals as risks and an uncertainty continue to be negative
factors.
BoT deputy governor Bandid Nijathaworn said volatility in the money market
may persist this year, noting that the central bank will intervene if
necessary to prevent obstacles from occurring. It is still necessary for the
private sector to adjust in the uncertain business climate.
“There are positive signs for the economy in 2010, but we shouldn’t become
reckless because uncertainty still prevails. The private sector should do
business with caution,” Bandid said.
The private sector must depend on itself as it also must manage costs
efficiently.
Financial costs are expected to rise after the government-sponsored economic
stimulus package starts to run down and volatility in money market shows
sign of increasing, he said.
The private sector cannot compete on the basis of cost-cutting alone. It
must explore ways to expand trade and investment and prepare for business
competitors from neighboring countries who would open businesses in
Thailand, Bandid added. (TNA)
Thai bourse gains 63% in 2009 from 2008
Despite economic problems within and outside Thailand along
with the domestic political crisis, the Stock Exchange of Thailand (SET) index
in 2009 soared 63 percent above 2008, while the daily average turnover last year
was about Bt17.9 billion, up 12.5 percent from 2008, said SET president
Pattareeya Benjapolchai.
The SET index on December 30, the last trading day of 2008, the market stood at
734.54 points.
The smaller Market for Alternative Investment (MAI) closed at 215.30 points on
the same day, a rise of some 32 percent from a year ago, while daily average
turnover was at Bt372 million, an increase of some 50 percent from the year
before.
As of December 29, foreign investors were the largest net buyers with total net
investment of Bt38.5 billion, and were net sellers of Bt162.3 billion in 2008.
Six firms were listed on the main bourse and 11 companies were listed on the MAI
in 2009. The newly listed firms mobilized funds of Bt6.2 billion.
Pattareeya said the SET had laid out four strategies to implement in 2010, with
an aim to increase its potential and to drive the national economy.
The strategies are to boost the quality and upgrading confidence in the SET,
increasing liquidity, building future fundamentals, and preparing for SET
restructuring, as it will become a public company, she said. (TNA)
Export chief confident Thai exports to grow as targeted next year
Thailand’s exports are quite likely to grow 10-14 percent as
targeted for 2010, according to the Department of Export
Promotion (DEP).
Director-General Srirat Rastapana said she is confident that
exports next year will reach the growth target because the
department has improved its strategy to promote the export of
individual products.
Additionally, the department is working more closely with the
private sector to push for the shipment of new products and
goods with a Thai identity.
She said the DEP will focus on helping small-and medium-size
enterprises (SMEs) penetrate new export markets within ASEAN
because the ASEAN Free Trade Area took effect on January 1.
Under the agreement, import tariffs collected within ASEAN will
fall to zero in percentage terms.
She said the Ministry of Commerce will send officials to visit
clients in new major export destinations such as Japan, China,
and India in a bid to maintain market share and find channels to
expand. (TNA)
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