Struggling sector confident of boost from economic stimulus

The printing and packaging sector is upbeat about prospects in the fourth quarter once effects from the government’s new stimulus package start to be felt.

Kriangkrai Tiannukul, chairman of the Federation of Thai Industries’ printing and paper packaging club, expects demand will rise by year-end after being stuck in the doldrums for the past couple of years.

“The industry is manufacturing at only 50% capacity now. Some have even stopped producing,” he said.

“However, demand should rise before the year is out.”

Mr Kriangkrai said government policies aimed at boosting the economy would help to boost orders, particularly in the export sector, which would in turn push up demand for paper and packaging.

“As export orders rise, so does demand for paper and packaging,” he said.

Mr Kriangkrai said measures aimed at boosting incomes of villagers in remote areas such as the One Tambon One Product scheme or the new loans to Village Funds would also benefit the paper and packaging industry.

Demand for food and beverage packaging will also rise in line with rising consumption thanks partly to recovering tourism.

“This will be one of the strongest factors boosting paper and packaging demand,” Mr Kriangkrai said, adding that demand in this sector had been sluggish all year.

He pegged the annual value of the paper and packaging sector at 300 billion baht.

“But despite the government stimulus, we still expect zero growth in the sector this year,” Mr Kriangkrai said. Rising demand in the second half should offset losses in the first half but is unlikely to be strong enough to create positive growth, he said.