urgent tasks face minister for Commerce

The top-priority tasks of the incoming commerce minister should be to stabilise farm goods prices, promote exports and boost consumer confidence during these increasingly tough economic times.

It will be a big challenge for the new minister to prove his potential to run the ministry at this time when both the global and national economies are sluggish, said Poj Aramwattananont, president of the Thai Frozen Foods Association.

"The Commerce Ministry is one of the government's economic arms, along with Industry, Agriculture and Finance. The government must select a highly qualified person to manage it," he said.

Democrat MP Tairong Suwannakeree, Kiat Sitthi-amorn or a member from the Bhum Jai Thai Party are in the frame to become the next commerce minister.

The ministry is facing economic problems on both the internal and external fronts.

Externally, it has to drive export growth while global trade is in a slump. Previously, exports have grown by double digits, but the situation will be totally different next year.

The private sector believes exports will face flat growth next year, compared with this year's expected 18-per-cent growth to US$179 billion (Bt6.18 trillion). If so, it will be the worst performance in more than a decade.

The new minister must show his capability to boost export growth, as the sector is one of the country's key economic drivers.

The ministry should not rely on market demand, but try to create differentiation to promote export growth through new strategies and by being more active.

Moreover, the impact of the world's financial crisis will create domino effects on domestic consumption.

Decreasing oil prices have led to lower agricultural goods prices. Corn-farming activists have blocked streets in northern provinces to call on the government to extend its price intervention programme, as maize prices have fallen sharply in the second half the year.

Other agricultural product prices have also dropped, including rice, cassava, palm and rubber.

The government must consider how to manage farm-goods prices and draft a plan to create sustainable measures to ensure good prices in the long run.

It has already been proved that pouring huge amounts into such intervention programmes had never helped ensure sustainable development of Thai farm goods.

Besides paying attention to farmers, the ministry must also tackle high consumer good prices, as public confidence over spending has continued to drop due to the political turmoil.

The ministry must, therefore, ensure that consumers have the ability to purchase goods by controlling prices and pressuring manufacturers to lower retail prices following a reduction in production costs.

Other important tasks for the ministry are to press for the passage and implementation of the draft retail and wholesale business law to enable small Thai retailers to survive, further free-trade agreement negotiations and implementation as a way to facilitate trade and investment growth, and to promote international competitiveness.