Connect with us

Banking

Strong baht may hit Thailand’s automotive industry

The rapid appreciation of the baht combined with a labour shortage may inflict a serious blow on Thailand’s automotive industry as some companies mull relocating their production bases to Indonesia, according to a Thai industrialist.

Published

on

automobile export

The rapid appreciation of the baht combined with a labour shortage may inflict a serious blow on Thailand’s automotive industry as some companies mull relocating their production bases to Indonesia, according to a Thai industrialist.

Surapong Paisitpattanapong, spokesman of the automotive industry group of the Federation of Thai Industries (FTI), said the strengthened Thai currency has slashed the profit of auto manufacturers. Thailand’s auto exports represent 40-50 per cent of all production with a targeted increase to 1.1 million units this year.

 

Auto manufacturers are keen on investing more in Indonesia given the island country’s policy to support eco car production, he said. Regarding the government’s tax rebate for first-car buyers, Mr Surapong said some clients who paid booking fees to be entitled for the tax incentives have asked for a delay in receiving their reserved cars.

The delay in delivering the products to customers will contribute to overstock but it would not affect most companies’ manufacturing plans as it is less than 10 per cent, he said. Some first-car buyers who made their bookings late last year have requested to postpone receiving the vehicles due to financial constraints.

Mr Surapong said this year’s total auto production is projected at 2.7-2.8 million units but it may be reduced to 2.55 million units if more than 10 per cent of first-car buyers fail to abide by their booking pledges. (MCOT online news)

Read More Here : Strong baht to wreak havoc on Thai auto industry | MCOT.net | MCOT.net

Economics

China’s new three-child policy highlights risks of aging across emerging Asia

Thailand’s (Baa1 stable) total dependency ratio is set to jump nine percentage points to 51% by 2030 – a faster increase than China’s – which will pressure public and private savings through higher taxes and social spending, reducing innovation and productivity gains.

Published

on

Street vendor in Bangkok

Population aging in China (A1 stable) and other emerging markets in Asia will hurt economic growth, competitiveness and fiscal revenue, unless productivity gains accelerate, according to a new report by Moody’s Investors Service.

(more…)
Continue Reading

News

Climate change raises asset risks for banks in Asia-Pacific

Climate change and related government policies raise asset risks for banks in Asia-Pacific, while legal and reputational risks are growing while large, diversified banks in the region are better able to cope with these risks and preserve their credit strength

Published

on

Climate change and related government policies expose Asia-Pacific banks to physical climate risks, as well as risks that stem from sudden changes in asset values as economic priorities shift, according to Moody’s Investors Service in a new report.

(more…)
Continue Reading
Wise

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,097 other subscribers

Recent