MPI likely to rise 6-8% with global economic recovery

BANGKOK, Feb 11 (TNA) – Thailand’s Manufacturing Production Index (MPI) is likely to increase by 6-8 per cent this year since Thailand’s key trade partners have placed purchase orders continuously following the global economic recovery, according to the Industrial Economics Office (IEO).

Suttinee Poopaka, IEO’s director-general, said the purchase orders by the trading partners continued to increase particularly in main industries that count on Thailand as the production base for export such as hard disk drive, electrical appliances, electronics, and vehicle production.

Given the International Monetary Fund projection that the global economy will grow 3.9 per cent this year, she said it is very likely Thailand’s industrial sector will expand as targeted.

Although the Thai economy has been given a marked boost by the global economic recovery, it would remain engulfed with many risk factors including persistent political conflicts, a spate of violence in the deep South, and the impact of the suspensions of investment projects in the Map Ta Phut Industrial Estate.

All parties concerned must speed up finding measures to cope with the problems. Should the obstacles ease, she believed, the economy would enjoy a strong growth.

Mrs Suttinee said the Manufacturing Production Index in 2009 dropped by some 7.2 per cent from that of the previous year. Vehicle production totalled 999,378 units, down 28.3 per cent from 2008. Of this, 313,442 units are passenger cars, 670,734 units are pickups, and 15,202 units are vehicles for other commercial purposes, which decreased by 21.93, 31.19, and 14.50 per cent respectively.

Local sales totalled 548,871 units, down 10.62 per cent, and exports totalled 535,563 units, down 31.01 per cent.

This year, the vehicle production is expected to reach 1.4 million units, up 40 per cent from the previous year due to both domestic and global economic recovery. (TNA)