The Federation of Thai Industries said that economic losses caused by prolonged flooding would amount to THB 1.12 trillion or 10.5% of gross domestic product, with exports expected to drop by 10% YoY in each of the last two months of 2011.

Dr Tanit Sorat VC of FTI said that nearly 10,000 factories had been hit by floods, with 660,000 workers affected, of which 30% are in the automotive sector and 26% the electronics and electrical appliance industries.

The industrial sector has suffered losses of THB 475 billion, of which THB 237 billion was factory damage in the seven inundated industrial estates.

Dr Tanit said that the hard hit automotive sector will produce 300,000 units fewer than expected, losing revenue of THB 180 billion. He added that "These factories were forced to halt production but they still have to pay wages. This is a type of business opportunity loss."

Export damages are projected at THB 148 billion, with the household and agricultural sectors suffering losses of 80 and 50 billion, respectively.

Mr Pornsil Patchararintanakul VC of the Thai Chamber of Commerce said that by March 2012, 80% to 90% of companies affected directly or indirectly by the floods should have returned to normal.

He noted businesses should pursue improvement plans as a result, putting more emphasis on technology and machinery to improve productivity. Fields that could benefit include agriculture, genetics, nanotechnology and information technology.

(Sourced from www.bangkokpost.com)