TCC: strong baht will claim more victims

He noted that he did not know why Thai Silp South East Asia Import Export Co Ltd was closed, but believed that the Thai baht is just one of the factors as the company could have shouldered financial problems. Still, he said the strong baht has raised the losses for exporters especially those in the textiles industry.

 "More small factories would be shut down as when the baht is about 10 per cent more expensive than neighbouring countries like Indonesia and Vietnam, exporters can't compete with them," he noted.

 On July 16, the TCC will seek a meeting with Commerce Minister Krirk-krai Jirapaet, to ask if there will be any remedial measures. He also noted that the private sector could need to raise their product prices and consequently see their shares in the export markets slashed. Meanwhile, exporters could need to replace machinery to reduce production costs, and the government can help through a cut in machinery import tariffs.

 On the Bank of Thailand's saying that exporters' sale of US dollar spurred the baht appreciation, he admitted that such behaviour really exists.

 "But it should help alleviate the situation if the Bank of Thailand allows exporters to hold on their foreign exchange income for more than 15 days (before they are required to convert the income into Thai baht)," he said.

- The Nation