Joint panel calls for help on jobs

"The government and the private sector must contribute something to slow down job losses. A [temporary] exemption from social security co-payments, for example, will help reduce companies' costs," Pramon Sutivong, chairman of the Board of Trade and the

Thai Chamber of Commerce, said yesterday after leading a meeting of the Joint Committee on Commerce, Industries and Banking (JCCIB).

The JCCIB may also call on the government to deduct some types of taxes for some labour-intensive businesses that have fallen into the red.

This proposal will soon be discussed in further detail with the Labour Ministry, he said.

The JCCIB is waiting for Prime Minister Abhisit Vejjajiva's reply to its invitation to hold a meeting with the government in order to submit its proposals, which include urgent steps and medium- to long-term measures.

The urgent actions will focus on solving present problems like reviving confidence in the country, increasing liquidity, tackling unemployment and encouraging collaboration between the public and private sectors.

Measures for boosting liquidity cover a reduction in corporate income tax from 30 per cent to 20-25 per cent and the extension of the tax deductibility of retained losses from five years to eight years. Nonetheless, it will ask for a revision of the tax structure in the future.

The JCCIB also plans to host a dinner talk as a venue for Abhisit and his economic ministers to explain their policies to local and foreign businessmen at the end of the month.

The event is expected to restore confidence among businesses and create a positive image for the Kingdom, Pramon said. The government must stimulate domestic consumption, because the export outlook is grim, he stressed.

"We'll be satisfied if this year's exports turn out to be only flat. The exports of some industries, such as automobiles and electronics, are obviously heading for minus 20-30 per cent," he said.

Federation of Thai Industries chairman Santi Vilassakdanont said exporters should keep expanding their markets in emerging markets like India and China this year. He expects industrial exports to expand only zero to 5 per cent this year.