Image from The Nation Thailand/ANN
BANGKOK (Reuters): Thailand's cabinet has approved a budget of 7.9 billion baht (US$226.36 million - RM1.03bil) in incentives for sugarcane farmers not to burn their crops, and reduce pollution, a government spokesperson said on Monday.
Radklao Inthawong Suwankiri said the incentives do not conflict with Thailand's obligations under the World Trade Organization because they were aimed at reducing pollution.
Thailand's manufacturing sector continued to shrink for the fourth straight month, but at a slightly slower rate in November due to softening demand amid a global downturn, a survey has showed.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) was recorded at 47.6 last month, edging up from the near three-year low of 47.5 in October, a signal of another deterioration in operating conditions, according to S&P Global.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.
According to the survey, the contraction was attributed to a record drop in new orders as a result of worsening economic conditions and client base losses. Meanwhile, global conditions were also subdued, leading to a third monthly decline in work intakes from abroad.
Output climbed as manufacturers worked through existing orders to support ongoing production growth. However, the expansion was only moderate, as backlog work was completed at an above-average pace, the survey showed.
Price pressures remained muted in the face of weak demand. Given the central bank's continuous monitoring of inflationary pressures, it is important to keep an eye out for any further signals of price hikes after input cost inflation returned in the November survey, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
