'Reduce fees to assist producers'

The Industry Ministry should reduce or waive its annual registration fees for manufacturers, as a means of bringing down their operating costs at a time when lower demand is leading to massive lay-offs, said the Office of Industrial Economics.

The OIE forecasts that the manufacturing production index (MPI) will fall from 6-7 per cent this year to 1-2 per cent in 2009 because of domestic political tensions and the global economic slowdown.

In line with lower production, the growth of manufacturing gross domestic product will slump from 6.6 per cent this year to 2-3 per cent next year.

OIE director-general Arthit Wuthikaro said yesterday this could boost the number of the unemployed in the industrial sector to more than 1 million.

"The downturn in the MPI and manufacturing GDP has become obvious this quarter. We estimate that industrial GDP in the fourth quarter will fall 2 per cent on quarter and continue dropping until the second quarter next year," he said.

Arthit said the annual registration fees levied on industrial plants by the ministry are worth Bt320 million a year. Though the overall amount is relatively small, all possible measures should be exercised to help industrial operators during these difficult times.

He said the office would also ask for a cut in the fees for product testing for manufacturers, as well as call on the government to approve the mid-year fiscal budget to enhance human resources and delay lay-offs.

The government's spending will be the key factor in terms of reviving the country's economy. "The government should approve the stimulus package of Bt100 billion as soon as possible, as well as push forward the mega-projects by including provisions for bidders to use local supporting industries," he said.

He agreed that the government should cut income tax to encourage people in the household and private sectors.

"If the deduction affects the government's revenue system, then the government should at least reduce the tax for small and medium-sized enterprises," he added.