Governor of the Bank of Thailand Prasarn Trairatvorakul stated that since many risks and challenges are lying ahead, the public and private sectors, as well as individuals, in Thai society should build “self-immunization” from external threats, for the sake of the country’s healthy economic growth.
In his address "Managing Risks and Rising to the Challenges of 2013,”
Mr. Prasarn said that Thai exports had been adversely affected by the economic
slowdown in major economies. However, private sector spending and increased
income from tourism would contribute to the growth of the Thai economy in late
2012. He believed that the Thai economy in 2012 would grow by 5.7 percent.
Mr. Prasarn said that the Thai economy would still depend mainly on
domestic drive during the global economic slump. More investment is likely to
be seen, as investors remain confident in the country’s overall economy.
Thailand also needs to be prepared for the ASEAN Economic Community in the near
future, when more capital would flow in for investment in the Government’s mega
projects. This would create a favorable investment atmosphere for the private
sector. For this reason, the central bank governor believed that the Thai
economy in 2013 would expand by 4.6 percent.
He pointed out that the implementation of the 300-baht daily minimum wage
across the country would become a domestic challenge for the business sector,
especially small entrepreneurs who must shoulder higher production costs. If
the business sector is able to adjust to the new situation by reducing
production costs and increasing production efficiency, it will be ready for
greater competition in the soon-to-be ASEAN Economic Community.
In order to deal with tougher competition, Mr. Prasarn suggested that the
business sector improve its risk management and enhance the quality of
products. Now that labor shortages have become a problem, the country would no
longer gain advantage by selling low-priced products, because of higher labor
costs. So the business sector needs to seek ways to add value to various
products.
As for individuals, the Governor of the Bank of Thailand suggested that the
general public plan to manage risks and be prepared for the changing situation,
as well. He urged the people to focus on staying disciplined with their savings
and enhancing their potential.
He said that efficient spending by the public sector would help drive the
economy and cope with short-term risks. The Government’s investment through
major infrastructure projects would also play a key role in stimulating the
country’s economy. In the overall picture, government agencies, as public
service providers, would also help the country deal with risk management
through various measures, such as price stability and appropriate economic
stimulation.
(thailand.prd.go.th)