Perilous
Times and Climate Change
Thailand counts cost of monster floods
by Staff Writers
Ayutthaya, Thailand (AFP) Nov 25, 2011
A young couple scour a jobs board in the Thai city of Ayutthaya in
a desperate hunt for work, more than a month after the factories
where they worked were flooded.
They say they are willing to do any work, but with major
industrial areas still submerged in Thailand's worst flooding in
half a century, vacancies are scarce.
Huge swathes of central Thailand were left under water for weeks
when severe monsoon rains caused massive deluges -- ruining crops,
closing thousands of factories and swamping millions of homes.
Hundreds of thousands of people were put out of work when the
floodwaters swept into key industrial estates in Ayutthaya, 80
kilometres (50 miles) north of Bangkok, and in the outskirts of
the capital.
While many factories continue to pay wages and others handed out
lump sums when they let staff go, some workers are facing acute
financial worries.
"I haven't had any of my salary because I started work just two
days before the floods," said Supranee Kongsomkaew at the
Ayutthaya employment office.
The 23-year-old said she will probably have to wait until
factories dry out before she will be able to find work.
Ayutthaya's Rojana Industrial Park, where thousands are employed
by a host of international auto and electronic firms including
Hitachi, Honda and Sanyo, is still deluged.
The water level was around half a metre (1.5 feet) on Thursday,
down from nearly three metres in mid-October. But the waters are
not expected to clear until early December, two months after the
site first flooded.
Thailand's economy is predicted to take a major hit as a result of
the flooding, with the growth forecast for 2011 recently revised
down to 1.5 percent, from 3.5-4.0 percent.
Exports have taken a hit and tourism has also suffered as visitors
are put off by dramatic images of buildings and temples marooned
in vast pools of water.
Thanawat Poliwichai, director of the Economic and Business
Forecasting centre at the University of the Thai Chamber of
Commerce, estimates the cost to the economy will be up to 450
billion baht ($14 billion), mostly in the industrial sector.
The bill for property damage could run to $22 billion, he said.
"The damage is not just limited to this year. It will continue to
cost next year as well because factories will not be able to
resume production until probably February," he told AFP.
Thailand's floods have also had global effects, disrupting world
production of everything from cars to computers.
Honda said it still cannot properly assess the damage to its
Rojana plant, which employs 4,000 people. Aerial footage from the
site shows hundreds of rusting cars covered up to their roofs by
filthy water.
Hideto Maehara, of Asian Honda, said the company welcomed Thai
government assurances that there will be no repeat of the
disaster, but said the firm was considering the wisdom of
producing key parts in one place.
"Is it better to spread out production sites and make parts
locally in various countries, or to continue to concentrate our
production sites and export from there? We will have to engage in
further discussions," he said.
Industry minister Wannarat Channukul said the government planned
to exempt replacement machinery and raw materials from import duty
to ease the pain for businesses.
The floods have posed huge challenges for multinationals such as
Honda, but for smaller firms the road to recovery is likely to be
even harder.
Workers at the Solar Power Technology plant on an industrial
estate on the edge of Bangkok hoisted valuable hardware off the
ground before the floods hit.
But the water rose several feet higher than expected, lifting
machines off their stands and leaving them strewn and broken
across the floor.
General manager Boriwat Chim Charee said damage to equipment alone
will cost 30 million baht and only new machines were insured.
But he said the firm has rented another factory to fulfil urgent
orders and he was determined to restore the plant as soon as
possible.
"We have already sent our people to Japan to buy new machines," he
told AFP.
Economist Thanawat said the recovery of smaller firms would depend
on the speed at which banks release loans and support measures
come into force.
But even in the midst of the disaster, opportunity presents itself
for those with entrepreneurial spirit.
In the areas around Bangkok's second airport Don Mueang, the only
way to traverse the stagnant green waters of flooded streets is by
boat.
One man told AFP that when the floods came and his regular work in
construction disappeared, he got a boat and set up a water taxi
service -- and business is brisk.