Business leaders urge Thais to spend more

Ninnart Chaitheerapinyo, vice chairman of Toyota Motors Thailand, believes that most people had enough cash in their wallets but were curbing their spending due to concerns of losing their jobs.

"Indeed, the impact of this crisis is much lower than that in 1997 because this crisis is not home-grown. Yet, people have stopped spending because they are panicking. If everyone came out to spend, businesses would survive and the economy would pull through," he said at a seminar yesterday.

Kan Trakulhoon, president of Siam Cement Group, added that confidence was crucial to encouraging people to spend. If things remained stable politically, people would start reaching for their wallets, he said, adding that the government could start spending first, which would encourage the private sector and public to join in. "People will resume spending once confidence returns," he reiterated.

Apichart Sankary, president of the Association of Thai Travel Agents, said that once the nine million or so workers receive their Bt2,000 gift cheques from the government in March, they should spend it instead of depositing it in the bank. "If they don't spend the money, the economy won't move up and many firms may have to lay off more workers," he said.

In the worst-case scenario, he said, nearly 80,000 workers in the travel industry stood to lose their jobs, but these jobs could be saved if the public spent more money. This would also help workers in other industries. If the number of travellers rise, there would be a higher demand for buses, hotel rooms and food items, which would benefit workers in other industries like auto, construction and farming.

"If money is not circulated, people will start losing their jobs. This is the reason why the government is giving away all this money," Apichart said.

Meanwhile, a survey conducted by Bangkok University showed that many new graduates, especially those who had taken education loans, were worried about their financial future. The poll, involving 1,226 graduates, was conducted at 20 educational institutions in Bangkok and nearby provinces from February 6 to 11.

The study found 52 per cent of new graduates were worried they would not find jobs, while 47.8 per cent said they would continue studying or help in their family business. Some 63 per cent believed they would be overqualified for their jobs.

With regards to ways in coping with the economic slowdown, 31.6 per cent said they were planning self-employment, 29.7 per cent planned to pursue higher education, 16.5 per cent expected to find jobs they were overqualified for, while 13.7 per cent were still undecided.

However, 65.4 per cent were confident that the government could revive the economy, with 55 per cent saying the administration's plan to address unemployment would work.