Siam CEO comments on Thai flood factor

Siam CEO comments on Thai flood factor
Published: 28 November 2011

The Thailand government must outline measures to assist flood-affected companies and quickly restore confidence, business leaders say, as the private sector has done its part to aid flood victims, the Bangkok Post reports.

Kan Trakulhoon, the president and chief executive of the Siam Cement Group (SCG), says recovering confidence is an immediate challenge for Thailand.

"I think the short-term issue for the country is how the government can help companies affected by floods quickly resume operations such as providing soft loans," he said.

In addition, measures such as relaxing regulations and lowering tariffs for imported parts will be critical in assisting industrial operators suffering supply chain disruption.

Mr Kan names water management as another key concern to be addressed, along with an increase in public awareness regarding care of canals and other water resources.

The chief executive will discuss Thailand’s economic outlook with foreign investors in New York during a roadshow with UBS starting on Monday.

"The economy this year is unavoidably affected by floods that dampen economic growth to below 2%," Mr Kan said. "This has to signal substantial growth in the first half of 2012."

With key sectors led by electronics and automobiles seriously damaged, Thai exports are expected to
continue to dip until next year’s first quarter.

"I don’t agree with some analysts’ view that Thailand could expect full recovery in the fourth quarter of 2012, which is a full-year impact," said Mr Kan. "I think the economy can recover more quickly."