1:53 AM
McGhori
BANGKOK: The government must take a leading role in mobilizing the economy as floods had weakened the private sector, Kosit Panpiemras, executive chairman of Bangkok Bank, said on Tuesday.
At a seminar, Economic Rehabilitation and Direction in 2012, Mr Kosit said the Thai economy must be pushed ahead by the government because the production sector is weakening by the devastating floods.
Only 80 per cent of the inundated industrial plants would be able to resume production in the next six months and therefore they are not in a position to help boost the economy, particularly in the first quarter of next year, said the banker.
He said two negative factors that could derail the recovering economy are global economic recession and impacts of the great floods.
Only the monetary policy of the central bank’s monetary policy committee could not help resolve these problems, he added.
Methee Supapong, senior director of Domestic Economic Department at the Bank of Thailand, said the widespread flooding had directly affected investment.
He believed 90 per cent of the flooded manufacturers would be able to resume operations in the second quarter of next year.
Mr Methee said political uncertainty is a major risk factor for Thai economy in 2012 because no one knows what would happen after the floodwater has receded.
The central bank will within this week send officials to survey flood damage to the seven industrial estates, starting from Bang Pa In and Bang Wa (Hi-Tech) industrial estates. They will also listen to opinions and requirements of the flooded manufacturers, he said.
The gathered information will be used for mapping out suitable monetary policy at the meeting of the monetary policy panel, scheduled for Jan 2.
Posted in: INTERNATIONAL
