private sector should take advantage of the stronger baht

the Bank of Thailand (BoT) has suggested that the private sector should take advantage of the stronger baht for the time being by importing capital goods in order to reduce production costs.

Speaking in a seminar on Thursday, BoT Governor Prasarn Trairatvorakul admitted that the Thai economy is currently in good stability and has been expanding continuously. In order to boost competitiveness of the Thai private sector, he suggested entrepreneurs take this chance of baht appreciation to import capital goods.

Moreover, Thai entrepreneurs are also asked to improve the quality of labour although minimum wage will soon be adjusted up gradually. The governor reasoned that high-quality workers would lift productivity and quality of Thai goods.

Mr Prasarn added that the new government should give importance to research and development, as a tiny portion of budgets, or about 0.2% of the Gross Domestic Product (GDP), is allocated for the matter at present.