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Published on July 13, 2007

This is not surprising given that the baht strengthens every day - some days by 20 satang! While travellers and buyers of foreign products are gleeful at the cheaper prices, exporters have been crying foul. The more they sell, they less they gain when their foreign currency-denominated income is converted into baht.

That explains why exporters are complaining loudly and have asked for the central bank to intervene. And wherever they are, they are ready to file complaints, even at the CEO Forum, a special session that the Industry Ministry hosts to update industrialists on hot issues. In the fourth forum so far this year, these issues were foreign-exchange rates and excise taxes.

When discussions went on for a while, a business operator interrupted the session. "May I speak about the baht? I can't hold it in any more," he said.

Yet he was told to postpone his comments to the end of the session.

Minutes later, someone else in the audience raised his hand and without permission complained about the problems deriving from the strong baht.

The highlight was when he lashed out at Santi Vilassakdanont, chairman of the Federation of Thai Industries (FTI).

"I am a member of the FTI," he said. "And I'm really surprised at how Khun Santi is still saying that Thailand's exports are expanding. Maybe he doesn't know that many businesses are now soaked in the red. Not all exporters are selling Mama."

He must have misunderstood something.

Sahapat Holding - the producer of the best-selling Mama instant noodles where Santi serves as president - is also suffering from sluggish sales.

Boonsithi Chokwatana, chairman of the Saha Group, which is the major shareholder of Sahapat Holding, recently announced the group's sales would record zero growth this year, the first time in its 60-year history.

Even Mama instant noodles, though once the best-selling product whenever economic growth slowed down, could not help as its sales have also dropped.

 Hmm, these talk sessions should be organised more regularly. It seems that the Industry Ministry has failed in its mission of education. Though tracking every movement of the exchange rate, one industrialist does not seem adequately updated on what is really happening.

achara_d@nationgroup.com