[Thai] Export falls 30pct; 1 mln [Thais] could be laid off: FTI

Tuesday October 28, 2008

"Thailand is now facing both economic and political crises while other countries have to deal with the global economic downturn, and he could not see the answers to the problems" - Thanit Sorat, FTI deputy chairman

(BangkokPost.com) - The Federation of Thai Industries (FTI) warned that Thailand’s export output has plunged 30 percent and the slump could prolong till the beginning of 2009, which could leave up to one million people unemployed in the industrial sector.

FTI deputy chairman Thaveekij Jaturajarernkul said after the meeting with FTI provincial chiefs nationwide that the industrial sector may cut 10 to 15percent of employees, or approximately 900,000 to one million people out of about six million in total. Around 700,000 new graduates would also have more difficulties in finding jobs each year, he noted.

This is due to the global economic recession, and many industrial segments of the country have experienced lower sale orders by about 30 percent from the United States, the European Union and Japan.

“Many factories have lifted their overtime (OT) and reduced the number of workdays from six to five. Some factories have to lay off 10 percent of their staff, and the consequences should be more apparent by January 2009,” Mr Thaveekij said.

He urged the government and the private sector to jointly seek plans to cope with the economic crisis because there are no direct solutions at the moment.

Another FTI deputy chairman Thanit Sorat said the export output, particularly from clothing, furniture, ceramics and electrical appliance industries, has dived by about 20 to 30 percent.

“Thailand is now facing both economic and political crises while other countries have to deal with the global economic downturn, and he could not see the answers to the problems,” Mr Thanit stated.

FTI deputy chairman Dusit Nontanakorn said the economic breakdown is a global problem and the country could not put it under control.

On November 13, the Thai Chamber of Commerce will announce its study on the economic impact on the country’s industries and the plans to manage and address it in the short-term and long-term.