A current downturn in exports has provoked 25 business sectors to rethink their production strategies, the Federation of Thai Industries (FTI) has revealed. Key industries affected and readjusting embody metal, machinery, development supplies and furnishings, all of which considerably cater to the markets in Asia, the European Union and the United States.
The FTI lately unveiled the outcomes of a survey involving 201 company executives and FTI members. The findings confirmed that of total exports, greater than a third (36.2%) have been dispatched to Asian markets outside of ASEAN. This was followed by ASEAN (27.6%), the EU (12.4%), and the US (11.4%). Kriengkrai Thiennukul, the FTI Chairman, said…
“The firms are shifting gears in response; some are limiting production whereas others are reducing work shifts and additional time.”
This strategic shift is linked to a decline in production capacity across these 25 sectors, prompted by decreased demand for abroad items.
A warning of a possible international recession in 2023 by the World Bank last 12 months, within the aftermath of elevated inflation causing central banks to hike interest rates, has further complicated issues. In May alone, Thailand‘s export value, measured by customs-cleared tariffs, declined for the eighth consecutive month by four.6%, coming in at US$24.three billion, in accordance with a report from the Commerce Ministry, reported Bangkok Post.
The FTI anticipates zero progress in Thailand’s exports for this year. In the worst-case situation, it expects a contraction of 1%. Kriengkrai added…
“The low global economy and the threat of an impending recession have impacted the 25 industries.”
However, Members only maintains a positive outlook for the final quarter of this year, predicting improved exports. The federation expects the world financial system to choose up the tempo, spurred by increased business activities surrounding the upcoming Christmas and New Year festivities.
As part of its strategic suggestion, the FTI urges producers to widen their market search to incorporate new territories. Regions like the Gulf Cooperation Council (comprising Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain, and Oman) and South Asia (including India, Bangladesh, Pakistan, Afghanistan, and Sri Lanka) are highlighted as potential markets. Kriengkrai said…