Thailand: Private sector stays cautious on exports – 6 Sep 2017

• Thailand’s top business group is keeping 2017’s export forecast at 3.5-4% as it remains cautious over a number of downside risks. These risks include Hurricane Harvey’s effects on the US economy, political developments there, geopolitical tensions over North Korea and the baht’s trajectory.
• Mr Predee said that the 8.2% export growth recorded in Jan-Jul 17 was higher than the estimation made by the committee He said the Thai economy grew at a quicker pace than the committee had expected in 2Q17, mainly supported by exports and tourism.
• Meanwhile, Mr Predee said the private sector is working with the government to help educate Thai small and medium-sized enterprises (SMEs) on hedging against foreign exchange risks, while also offering hedging instruments with lower fees.
• Kalin Sarasin, chairman of the Thai Chamber of Commerce (TCC), said most large firms are naturally hedged, as they are both importers and exporters, while most Thai SMEs are not appropriately hedged.
• “Almost 90% of Thai SMEs do not hedge, so the TCC has already begun educating SMEs about hedging,” said Mr Kalin.
• With the monsoon season set to end, tourist arrivals in Thailand are expected to grow for the rest of 2017, helping boost consumption and, in turn, raising farm income, he said.

External Link : http://www.bangkokpost.com/business/news/1319015/private-sector-stays-cautious-on-exports