Commerce Minister Krirk-krai Jirapaet yesterday expressed confidence that the recent bomb blasts in Bangkok should not affect the Kingdom's economic and export growth.

However, he is worried that the strengthening baht will cause the country to miss its export target this year.

Krirk-krai accepted that exports will face a difficult time since the baht continues to strengthen against the US dollar alongside a slowdown of world trade and rising export competition.

The ministry estimates exports will grow by 12.5 per cent to US$145 billion (Bt5.2 trillion) this year, down from 17.5 per cent last year.

To maintain Thailand's export competitiveness, the ministry has ordered commercial offices overseas to draw up aggressive marketing strategies to drive exports. Particularly, they have to create more understanding among foreigners about the Kingdom's current political and economic environment.

"The blasts may have a psychological impact on consumer confidence and on travellers in the short term. But exports and inflation, which are under the ministry's control, should not be affected," said Krirk-krai.

He stressed that the situation was under the government's control and will not affect the nation's trading policies.

Meanwhile, the ministry will next week propose the results of the studies of the Foreign Business Act and the Retail Business Act's draft amendments to the Cabinet.

Krirk-krai said the ministry agreed with the Foreign Business Act committee's suggestion to amend details of the law, particularly in annex III.

He said a clearer definition of "foreigner" and the business lists in annex III should increase foreigners' confidence after the Cabinet's approval of the amendment.

Under the details of the study, the committee suggested that the ministry allow foreign companies to restructure their shareholding within three years.

If a business has foreign shareholders or foreign voting rights comprising more than 50 per cent, the business will be defined as foreign.

Businesses that fall under a particular law to control their operation will not have to ask for the Commerce Ministry's approval to operate. These include finance, insurance, tourism, capital, sub-contract accounting and businesses involved with the government such as water pipelines.

A source from the ministry said the telecommunications business will remain in annex I, which is reserved for Thais only.

In addition, the ministry is considering a proposal to the Cabinet this month to allow the Insurance Department to become an independent organisation.

Petchanet Pratruangkrai

The Nation