Private sector sends 7-point plan to govt

The Joint Committee on Commerce, Industry and Banking (JCCIB) will submit its recommendations to Prime Minister Somchai tomorrow.

Thai Bankers' Association chairman Apisak Tantivor-awong said without the appropriate measures, Thailand might face serious consequences as foreign investors withdraw their investments and send the money back home to settle the debts of parent companies.

He called for the government to inject money and increase liquidity in the money market to prevent a credit squeeze. The government must also accelerate budget disbursement and relax its monetary policy,  he said.

"The financial crisis in the US is like a tsunami, hitting Europe first before moving on to Asian countries, including Thailand," said Apisak. The JCCIB's proposal comes with seven measures devised to keep the economy humming along.

Thai Chamber of Commerce chairman Pramon Sutivong said the first measure was to create a mechanism for the close monitoring of the impact from the US.

"Although the crisis may have less of a direct impact on the country, it will create side effects for other countries and groupings, including the EU  and Japan, and that will cause extensive deflation and a credit squeeze," said Pramon.

The other proposals were:

Help  exporters look for new markets to boost export growth while maintaining exports in traditional markets. As a short-term measure, the government could provide financial support under its Export Fund for more exporters to travel abroad for  exhibitions.

Promote closer cooperation between the public and the private sectors via committees.

Accelerate budget disbursements to  boost investment and spending.

Promote development of small and medium-sized enterprises via soft-loan packages.

Monitor closely the results of the Japan-Thailand Econom-ic Partnership Agreement, because regulations on steel-tariff reduction remain.

Pay more attention to solving the conflict in the deep South.