Thai exports seen up 2% this year but strong baht a challenge, shippers say

BANGKOK : Thailand’s exports are expected to rise 2 per cent this year, the upper end of a previous forecast of 1 per cent to 2 per cent growth, but the rapidly strengthening baht could be a challenge for the rest of the year, the Thai National Shippers’ Council said on Tuesday.
The baht reached its highest level in 31 months this week trading at 32.125 against the greenback. Year-to-date, the baht has risen 5.2 per cent, making it the region’s second best-performing currency after Malaysia’s ringgit.
The rapid appreciation of the baht was hitting exporters and tourism spending, the central bank said on Monday, and that it had managed the baht’s volatility.
“The baht’s appreciation is too fast when compared with our partners and competitors,” said Chaichan Chareonsuk, chairman of the council, adding the currency’s strength would hit agriculture and food shipments.
“This is the biggest risk … there are no supportive factors in the final stretch, we have to fight to drive exports.”
In the first eight months of 2024, exports rose 4.2 per cent from the same period a year earlier, helped by a weaker baht, Chaichan said.
Exports, a key driver of the economy, fell 1 per cent in the whole of 2023. They rose 7 per cent in August, though the baht’s rise is expected to impact fourth-quarter shipments.
Exporters also urged the government to further delay plans to raise the minimum wage.
“This would impact the cost structure and our competitiveness. It should be delayed further, don’t consider it now,” said Chaichan.
The government so far has delayed plans to increase the daily minimum wage in October, which would rise by 8 per cent to 20 per cent, depending on the region.