Extreme climate circumstances, together with drought and floods, may probably inflict a 36 billion baht blow to Thailand‘s economy this year, warns the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB). Drought, in particular, is a significant concern as it may severely affect the agricultural and manufacturing sectors, additional hindering the country’s already sluggish exports.
“Manufacturers are nervous about drought as a outcome of it could reduce manufacturing capability and have an result on exports,” said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), which is part of the JSCCIB.
Commerce Ministry data reveals that Thai exports decreased by 5.2% year-on-year to US$92 billion in the first 4 months of 2023, whereas imports fell by 2.2% to US$96.5 billion, leading to a commerce deficit of US$4.fifty one billion.
The JSCCIB submitted a proposal to the Prime Minister on May 31, in search of collaboration with the federal government to deal with the drought and mitigate its extreme impacts. Wacky urges authorities to devise mid-term and long-term options to make sure investment initiatives, notably these in the Eastern Economic Corridor (EEC), can proceed operating. The EEC space is home to 12 S-curve industries expected to drive Thailand’s economic system.
Kriengkrai stated that businesses have developed risk management plans to cope with drought and flood issues. In the manufacturing sector, firms are implementing 3R measures – lowering, reusing, and recycling water – to ensure adequate water provide for manufacturing processes. Additionally, firms are promoting the adoption of revolutionary applied sciences amongst farmers to assist them conserve water assets..