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Published on December 19, 2007

"Manufacturers will put in much more investment next year if their confidence is boosted by political stability following the election," he said.

He added that most manufacturers needed to expand their production capacity. A federation survey found they were already running at close to full capacity, with use recorded at 70-90 per cent.

Export growth in the industrial sector is forecast to shrink from 17.2 per cent this year to 10 per cent next year because of the global economic slowdown, particularly in the United States.

However, most manufacturers have adapted by expanding their customer base in other countries, such as Japan, Australia and European markets. Moreover, many industries such as food and textiles will gain benefits from tax reductions as a result of free-trade pacts with many countries, including Japan and Australia.

Santi added that exporters were focused more on Asean countries, as the regional market is predicted to grow 20 to 30 per cent in a few years.

Meanwhile, November's industrial index increased from 81.9 in the previous month to 82.3 - the highest level during the past six months - due to more domestic and foreign orders and optimistic expectations about next Sunday's general election.

However, most operators said their financial results had not increased because their production costs had also risen in line with rising oil prices.

Santi said some industrial operators would continue raising their prices.

Chalida Ekvitthayavechnukul

 The Nation