Cash injection aims to boost sick economy in deep south

The Commerce Ministry will spend Bt50 million to stimulate growth in five provinces in the deep South as the economy in the region continues to plummet.

The project is aimed at increasing the confidence of small and medium-sized enterprises, foreign traders and investors to do business in the area after some have moved out due to the daily violence.

The project will start in September in Songkhla, then move on to Satun, Pattani, Yala and Narathiwat.

The economy in the South accounts for 10 per cent of the country's gross domestic product. The economy is projected to grow by 4 per cent this year, but the economy in certain areas of the deep South is gradually dropping due to the ongoing turmoil.

Commerce Ministry inspector Krisda Piampongsant said the ministry wanted to stimulate the economy in these southern provinces by boosting the confidence of businessmen and the general public.

"The project will focus on food enterprises and SMEs to give security to people who have low confidence to operate a business there," he said.

On May 19-21, ministry officials will travel to Songkhla and Satun to cooperate with local governors in drawing up the project.

The government will help SMEs, in particular halal food producers, to improve their selling channels by setting up marketing training courses, promoting geographical indications for value-added goods, and supporting SMEs to attend international trade fairs.

Krisda said the project should persuade local entrepreneurs to stay in the area, while attracting more foreign traders - in particular from Malaysia and Indonesia - to do business in the deep South.

"The project should boost people's income by about Bt500 million in the first phase, as enterprises will have more confidence to maintain their business in the area," he added.

 A beverage retailer in Pattani, who moved to Bangkok this year, said many small enterprises could not maintain their business in the deep South as they fear the violence and an economic slowdown.

"More than 20 per cent of businesses operating there have moved to other provinces, mainly to Bangkok, because they want peace," he said.

The same source called for the government to seriously solve the prolonged conflict in the region.

"People are suffering to move from our home town, but we cannot resist as long as the conflict is getting worse," he added.