BoT asks private sector to use caution in business dealings in 2010

BANGKOK, Jan 2 (TNA) — Despite signs of improvement in the global and Thai economies in 2010, the Bank of Thailand (BoT) has warned the private sector to use caution when doing business deals as risks and an uncertainty continue to be negative factors.

BoT deputy governor Bandid Nijathaworn said volatility in the money market may persist this year, noting that the central bank will intervene if necessary to prevent obstacles from occurring. It is still necessary for the private sector to adjust in the uncertain business climate.

“There are positive signs for the economy in 2010, but we shouldn’t become reckless because uncertainty still prevails. The private sector should do business with caution,” Mr Bandid said.

The private sector must depend on itself as it also must manage costs efficiently.

Financial costs are expected to rise after the government-sponsored economic stimulus package starts to run down and volatility in money market shows sign of increasing, he said.

The private sector cannot compete on the basis of cost-cutting alone. It must explore ways to expand trade and investment and prepare for business competitors from neighbouring countries who would open businesses in Thailand, Mr Bandid added. (TNA)