Publication Date : 09-05-2013
Last month 29 export companies closed down, reportedly because of the stronger baht, indicating that the government needs to take drastic action immediately, according to the Business Development Department.
The department reported yesterday that 127 export companies went out of business in the first four months after the baht started to shoot up early this year. Deputy Commerce Minister Natthawut Saikua said this clearly showed that the baht's appreciation had created trouble for the export business.
"In March, only 19 per cent of those export companies that ended operations cited business losses, but in April, up to 41 per cent of such companies said they had faced losses," he said.
The authorities urgently need to restrain the baht's appreciation. If the Bank of Thailand does not have any solutions, it should consider cutting the policy interest rate, he said. The department will monitor the circumstances of the export-company closures .
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