FTI HEAD FEARS LOSS OF COMPETITIVENESS

       The chairman of the Federation of Thai Industries yesterday expressed concern about Thai industries' possible loss of competitiveness within Asean.
       Santi Vilassakdanont said some member countries might not implement tariff reductions after the Asean Economic Community (AEC) came into force next year.
       He said he had spoken with the Commerce Ministry several times about setting up a team to follow the movements of all free-trade agreements relevant to local operators.
       However, there has been no progress on this issue by the ministry.
       "If we remove our tariffs while other countries continue to maintain theirs at a low level, it will be difficult for us to remain competitive in exports. In addition, we may face a problem with other Asean countries dumping cheaper-priced products here," he said.
       This issue will be brought up during a meeting of the Joint Private Committee on Commerce, Industries and Banking (JCCIB) on Monday and will probably be a subject of debate at an upcoming Public-Private Partnership (PPP) meeting.
       Meanwhile, FTI deputy secretary-general Sommat Khunset said the JCCIB would discuss solutions for a shortage of financial support for small and medium-sized enterprises.
       This issue was already proposed at the previous PPP meeting, he said. However, there will likely be no change in the banks' criteria for loan approval.
       "We shall negotiate with the banks to get them to place greater consideration on loan approvals for companies that can show advance invoice orders. At present, banks usually consider a company's account for the past year. That's unfair during times of economic crisis," Sommat said.
       In addition, the JCCIB will propose the government appoint a relevant agency to continue providing low-interest loans for hard-hit operators, since the Bank of Thailand is not allowed to do so.
       "In some areas, such as the three southernmost provinces, operators still need low-interest loans to survive tough competition. Soft-loan approvals will last until 2011, with a combined value of Bt30 billion to Bt40 billion, then we'll have to look for a new solution," he said.