Posted on 23 Apr 2008
''Lots of negative factors that have arisen lately will be
reflected in the financial results of private companies in the next quarter,''
Mr Santi said.
Uncertainty in the world economy remains, driven by several
major threats. Crude prices, which affect production costs, continue to depress
the economy.
In addition, the impact of the
''The FTI's survey also shows the same thing _ business
operators lack confidence and foresee a dimmer future,'' he said.
Amid the gloomy outlook, however, there are some bright
spots. High farm prices in recent months have increased the purchasing power of
farmers. Motorcycle sales are therefore expected to jump by 7% from flat growth
last year.
Passenger cars are doing even better. Some 160,000 units
were sold in first quarter, a 16% rise from the same quarter last year.
''Apart from automobiles, electronic appliances should
benefit from the situation,'' added Adisak Rohitasune, an FTI vice-chairman.
He said domestic car sales this year could reach 680,000
units, 50,000 units more than last year.
''We expect 80% of the domestic car sales to be small cars
with engines under 1,600cc,'' Mr Adisak said, citing high fuel prices and the
government's policy to promote E20 fuel, a mixture of 20% ethanol, as the
reasons.
The FTI suggested that the government control raw-material
prices to help curb rising production costs, adding that price caps and import
taxes on steel, animal feed and petrochemical products should be considered.
''It should also start megaprojects immediately to inject
more money into the economy,'' Mr Santi said.
In addition, the FTI wants the government to reconsider the
crude-oil import tax.
Mr Santi says the government should see whether the benefit
it gains from higher crude import taxes collected due to more expensive crude
should be reviewed to lift pressure on local fuel prices, or whether it should
be more proactive about alternative fuel.
