Somkid in rallying call to officials
Concern about economic stagnation has prompted Commerce Minister Somkid Jatusripitak to urge the ministry's high-ranking officials to move ahead with plans for boosting exports and the domestic economy despite the current political strife.
Somkid ordered the officials at a meeting yesterday to implement the ministry's strategies for smoothing operations in all projects. "Although this is an acting government, we want to ensure that the economy will grow as targeted and inflation should not exceed its projection," he said. The Thai economy should grow by 5 per cent, while inflation should be between 3.5 per cent and 4.5 per cent, he added. Somkid stressed that the Export Promotion Department should boost exports, particularly to India and China, and the ministry's marketing team should be sent to penetrate markets. "Exports to the two countries will be one of the key engines driving the country's economic growth, so we have to boost exports," he said. Although all bilateral trade talks have been suspended, trade promotions should continue in both traditional and new, potential markets, he said. In addition, the ministry should keep in close contact with major trading partners to ensure market expansion. Somkid also ordered the Internal Trade Department to closely monitor inflation through price-control measures. He said any goods affected by rising production costs might be allowed higher retail prices. However, the consumer price index should not exceed its targeted growth of 4.5 per cent. Today, the Cabinet will consider whether to approve a request by sugar millers to increase the retail price of sugar by Bt2 of Bt3 per kilogram. The price is currently controlled at Bt14.25 per kilo and this has been a major factor contributing to sugar smuggling to neighbouring countries, where retail prices are higher. The ministry's permanent secretary, Karun Kittisataporn, said a sugar price increase would have only a 0.02-per-cent effect on Thailand's inflation. However, it would indirectly affect related industries and the ministry is studying these impacts. In addition, the ministry will continue to curb the value of imports so that the trade deficit will not exceed US$6 billion (Bt232 billion) to $7 billion this year. One way of achieving this is encouraging manufacturers to use local raw materials rather than importing them.
Petchanet Pratruangkrai The Nation
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