The Commerce Ministry has revised its 2009 export-growth target to 3 per cent, for a total of US$184.7 billion (Bt6.43 trillion). It is banking on the effectiveness of five newly launched measures to drive the sector. The previous target was for growth of 0-5 per cent.

Speaking after a meeting with 150 representatives of the private sector yesterday, Commerce Minister Pornthiva Nakasai said the ministry would ask for Bt3 billion in funding from the Bt100-billion supplementary budget to promote exports through marketing activities and roadshows. It will seek another Bt9 billion to stimulate domestic spending.

The five measures will focus on export promotion, business liquidity, marketing, image and advertising and supplementary measures to abate falling orders.

"As these measures are drawn up in cooperation with the private sector, we're confident we can achieve the 3-per-cent growth target," she said.

It is estimated that exports last year grew by 18 per cent to $179.6 billion, accounting for 70 per cent of gross domestic product.

As GDP is expected to expand by only 0-2 per cent this year - leaving up to 1 million unemployed - the Council of Economic Ministers yesterday approved the economic-stimulus framework.

Besides extending free electricity, water and bus schemes for another six months, the council approved the end of the excise duty on oil.

The ministers also approved the spending of the Bt100-billion supplementary budget, with nine programmes aimed at assisting workers in general, low-income workers, salaried workers, the elderly, farmers, private companies, students and state agencies, plus an image-rehabilitation scheme.

"Still, the government does not plan to lower value-added tax or corporate taxes," said Deputy Prime Minister Korbsak Sabhavasu. "All measures will be executed gradually but no later than April 1."

The government also plans to extend the agricultural-products pledging programme to cover rubber and palm oil, under the Bt110-billion budget approved by the previous government.

The previous government offered pledging programmes for rice, corn and tapioca. About Bt60 billion of the original Bt110 billion is now left.

The government will also set aside about Bt30 billion to sponsor a 15-year free-tuition programme, targeting 13 million students. A financial package to aid hard-hit companies was also considered, but no decision was announced.

Rachane Potjanasuntorn, director-general of the Export Promotion Department, said that the measures should drive this year's exports.

While the canned food export should grow by 10 per cent from previously-targeted 5 per cent; chicken export will grow by 5 per cent against minus 5 per cent; electronic and electric appliances by 2 per cent from flat growth; plastic products by 10 per cent from 7 per cent; shoes and leather goods by 5 per cent from 2 per cent, garment by 5 per cent from flat growth, and printing products by 25 per cent from 20 per cent.

Representatives of the Thai Chamber of Commerce, the Federation of Thai Industries, the Thai Bankers Association, the National Thai Shippers Association and various industry associations agreed to the five measures put forward by the Commerce Ministry.

Meanwhile, the "Siam Service Supreme" campaign will be kicked off with help from a to-be-established research-and-development centre for each service segment, to boost the sector's revenue by 10 per cent this year from Bt900 billion.

To increase liquidity, the Export-Import Bank of Thailand will provide additional credits of Bt10 billion to exporters and another Bt5 billion in export guarantees.
According to Porntiva, the government will work with exporters in strengthening exports to traditional and new potential markets through the "Thailand Best Friends" project.

Porntiva explained that under the project, the government will tighten relations with target buyers via Customer Relation Management measures to increase royalty for Thai goods and services.

The ministry will also held roadshow mission to target export markets, initially to Japan, China, Asean, and the Middle East.

Moreover, the ministry will improve Thailand's products image under the Thailand brand project as well as provide more online access for all Thai goods and services. Measures would also be launched to help exporters which suffer from slowing orders to penetrate the domestic market.

The government will concentrate on "Made in Thailand" scheme to increase Thai people to use more Thai products as way to compensate dropping export incomes, she said.

Private companies do not necessarily share this view, however.

Pornsilp Patcharintanakul, deputy secretary-general to the Board of Trade of Thailand and the Thai Chamber of Commerce, said exports this year would definitely face a drop of 8-10 per cent to just $167 billion due to slumping global demand.

He suggested more trade missions to new potential markets such as Russia, the Eastern Europe, and the Middle East, as well as cooperation between the government and modern trade operators in putting more Thai products in global outlets.

The leader of the government and high level official must also increase cooperation with top executive of modern retailers as way to increase distribution channels from Thai good via those modern traders' outlets worldwide.

Katiya Greigarn, chairman of the Federation of Thai Industries' electronics and electrical appliances club, urged the government to find measures to promote more locally sourced raw materials, as annual imports in the sector total Bt1.1 trillion. A decrease in company contributions to the Social Security Fund would also help, Katiya said.

Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said the government must stabilise the exchange rate in order to boost export competitiveness. The baht should trade between 35-37 per US dollar, he said.

Lakchai Kittipol, president of the Thai Rubber Association, said that export of rubber would be affected following the the slowdown in the car industry. To reduce costs of enterprises, Lakchai that the Bank of Thailand should delay the implementation of Basel II as it would increase costs of operation for enterprises during economic slowdown.

Source: The Nation