Top Thai Business Group Raises 2017 Export Forecast

Thailand's top business group said on Tuesday it expects exports to grow 3.5-4.5% this year, faster than it had predicted earlier, but maintained its outlook for the economy which continues to face risks.

The group had earlier forecast exports would rise 2.0-3.5% this year, the Federation of Thai Industries, the Thai Bankers' Association and the Board of Trade of Thailand said in a statement.

Exports, worth about two-thirds of Southeast Asia's second-largest economy, rose 7% in January-May from a year earlier, customs data showed.

However, it is sticking by its 2017 economic growth forecast of 3.5-4.0%, as domestic spending could be affected by falling commodity prices while it will take time for private and public investment projects to get off the ground, it said.

Thailand's new labour rules should have a limited impact on the economy after the government on Tuesday decided to delay enforcement of some of the rules, including tough penalties, for 180 days to give time for employers and foreign workers to adjust, Predee Daochai, the group chairman, told a news conference.

The decision came after an exodus of migrant workers from Thailand in fear of the regulations.

"While businesses welcome the six-month grace period, they need clarification of the procedural steps and requirements of the new rules to quickly process foreign workers," Mr Predee said.