Thread: wtf??? A committee to prevent factory closures

This place really is AMAZING!!

Kosit appointed chief of new committee

The Cabinet on Tuesday appointed Deputy Prime Minister and Industry Minister Kosit Panpiemras as chairman of the committee to prevent factory closure.








Nattawat Suthiyothin, assistant government spokesman, said that the Cabinet resolved to set up the committee which will speficy the guidelines and solutions for the problem, as proposed by the Labour Ministry.

The committee will have assistance from the Finance Mnistry, the Industry Ministry, the Commerce Ministry, the Foreign Affairs Ministry, the Labour Ministry, the National Economic and Social Development Board, the Federation of Thai Industries, Board of Trade, the federation of employer associations and the federation of employee association.

The establishment followed the brief closure of garment factory Thai Silp South East Asia Import Export last Wednesday. The factory owners cited the strong baht as the cause of such decision.

Kosit said after the Cabinet meeting that the government sees the urgency in solving the baht problems.

On July 19, he would discuss with Finance Minister Chalongphob Sussangkarn and Bank of Thailand Governor Tarisa Watanagase on the issue. He would also discuss this issue at the economic steering committee which comprised private associations and academics as members. Suggestions would then be forwarded to the Cabinet on July 24.

"The prime minister insisted that if any factory has to shut down itself, employees' benefits would be protected. We would be alert and find new measures to ensure no baht fluctuation. The interest rates tend to head downward, but not steeply," Kosit said.

Chalongphob also said that economic guru Virabongsa Ramankura's request for a 1 percentage cut in policy rate is a good suggestion, but it is not a panacea to stop the baht appreciation.

"We need more tools as domestic rates are near the bottom levels, while interest rates globally are about to head up," he said.

He also noted that the Bank of Thailand will announce additional measures, which include the extension of dollar holding period as well as the deposit of foreign currencies at domestic banks.
"We have sufficient tools, and this would not cause the economic crisis like in 1997," he insisted.

source: The Nation 18.07.2007

Thai Socialism... wonder who foots the bill?

sounds like Indonesia needs to do the same thing..

read here https://teakdoor.com/thailand-news/15...tml#post347185

Looks like the exodus to Vietnam may have begun.

^

Vietnam is no better!

^ Wonder if the rest of the world knows that?

Originally Posted by watterinja

Looks like the exodus to Vietnam may have begun.

now you come to mention it:

Thailand too expensive for steelmakers

Tata Steel chooses Vietnam for plant

ARANEE JAIIMSIN High electricity costs, lack of coal, iron ore and scrap prevent Thailand's steel industry from competing with other Asian countries, said Tata Steel Ltd. The Indian company does not plan to build an iron smelter in Thailand despite the fact that steel consumption in the country would continue to grow in next four decades, said B. Muthuraman, managing director of Tata Steel Ltd, who is visiting Thailand for the company's first anniversary.

Bangkok Post : Business news

Originally Posted by William

a 1 percentage cut in policy rate is a good suggestion

what would be the effect on inflation?

govt is messing with the natural order of the ecomomy, isn't this what caused the last financial crisis??..
can't be too many nails left to close this coffin lid.

Another 'big' decision due to happen nearer to month-end is whether Adidas will close its Bangkok operation & ship everything to Vietnam - it's latest new factory.

We are having a new 1997 crisis in 2007 !!! what a coincidence

When they talked about this on the news they said that one of the main reasons they were doing this was because, due to the strength of the baht, a number of factory owners were losing too much money on exports and rather than waiting around to go bust took what money they had left and absconded, leaving the workers with no jobs and no compensation and that this was partly an attempt to prevent that happening again.

^ evidence ?

(i dont mean u - i mean all these absconding factory bosses?)