Thailand's Electronics Business Likely to Rebound Next Year, Expert Predicts.

Byline: Srisamorn Phoosuphanusorn

Nov. 1--Prevailing global tension will worsen the slowdown in Thailand's electronics business in the short term but a turnaround with annual growth of at least 30 percent is forecast for next year.

Before the Sept 11 attacks on the US, the electronics industry worldwide was projected to record an improvement in sales by the fourth quarter of this year, after a 40 percent decline in global turnover earlier this year, compared with last year's performance, and a 20 percent downturn in sales in Thailand.

"The bad news for the electronics business following the attacks is that the upturn could be further away as worse is yet to come. But the good news is that the industry is expected to rebound strongly next year, after the cyclical setback," said Yuthana Hemungkorn, chairman of the Electronic and Computer Employers' Association.

Mr Yuthana said that the electronics industry in Thailand was projected to post annual growth of at least 30 percent in the second half of next year. In the worst scenario, the turnaround would be seen by 2004.

Although it is difficult to assess the impact of the attacks, there has been a sharp fall in demand for electronic products because consumers are reluctant to spend and business confidence has weakened.

Mr Yuthana said that companies were more aware of the need to have contingency systems in place to stimulate demand for electronic products.