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 include metal, equipment, building supplies and furnishings, all of which significantly cater to the markets in Asia, the European Union and the United States.
The FTI recently unveiled the outcomes of a survey involving 201 company executives and FTI members. The findings showed that of complete exports, more than a 3rd (36.2%) were dispatched to Asian markets outdoors of ASEAN. This was adopted by ASEAN (27.6%), the EU (12.4%), and the US (11.4%). Kriengkrai Thiennukul, the FTI Chairman, said…
“The corporations are shifting gears in response; some are limiting manufacturing while others are lowering work shifts and additional time.”
This strategic shift is linked to a decline in manufacturing capacity across these 25 sectors, prompted by decreased demand for overseas items.
A warning of a possible world 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 worth, measured by customs-cleared tariffs, declined for the eighth consecutive month by four.6%, coming in at US$24.three billion, based on a report from the Commerce Ministry, reported Bangkok Post.
The FTI anticipates zero development in Thailand’s exports for this year. In the worst-case situation, it expects a contraction of 1%. Kriengkrai added…
“The low world economic system and the risk of an impending recession have impacted the 25 industries.”
However, the FTI maintains a positive outlook for the last quarter of this 12 months, predicting improved exports. Premiere expects the world financial system to choose up the pace, spurred by elevated enterprise actions surrounding the upcoming Christmas and New Year festivities.
As part of its strategic suggestion, the FTI urges producers to widen their market search to include 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…