Private Sectors expressed concern that the Thai economy could be severely affected by extreme weather caused by climate change this year, urging all sides to prepare for natural disasters that could hinder the country’s agricultural and manufacturing sectors.
The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) stated that manufacturers are currently concerned about the upcoming drought which is exacerbated by climate change. The disaster will result in water scarcity, which would restrict production and, consequently, impact exports, which have already been sluggish since the beginning of the year.
According to reports from the Ministry of Commerce, Thai exports for the first four months of this year have decreased by 5.2% year-on-year to 92 billion US dollars. Meanwhile, imports fell 2.2% to 96.5 billion, resulting in a 4.51 billion dollar trade deficit.
The JSCCIB said that a proposal was submitted to Prime Minister Gen Prayut Chan-o-cha last month with plans to tackle the drought and reduce the economic impact caused by water shortage. Meanwhile, companies have prepared risk management plans to cope with drought and flood problems. Some businesses are also collaborating with farmers to utilize innovative technology to conserve water supplies and maintain productivity.
Despite these precautions, the JSCCIB stressed the significance of the government playing a significant role in mitigating the effects of these crises. It urged the government to consider the Federation of Thai Industries’ suggestions on measures to deal with the drought in a sustainable manner, as well as adapt its water resource development to align with national disasters in the coming years. (NNT)