February 22, 2008
Bangkok - Strong baht currency and high global oil prices are the two biggest concerns for business sector, according to the Thai Chamber of Commerce’s survey.
Nearly 500 entrepreneurs in nine manufacturing sectors nationwide were surveyed during December 11, 2007-January 28, 2008.
Most of them would end operations and reduce employment if the exchange rate reached 30 baht to one US dollar and the oil price was not less than $80 per barrel.
According to Mr. Chainant Ukosakul, chairman of the international trade sub-committee, every one baht stronger will make Thai economy delay 0.2%.
The Thai currency is now at 10-year highs against the dollar.
Exports are a key engine of the Thai economy, accounting for more than 60 percent of the gross domestic product.
Nearly 30 percent wanted the government to take action to deal with fuel prices, while more than 10 percent cited boosting domestic consumption as a priority, the survey said.
Small and medium sized businesses have been hardest hit by the rising baht.
