BANGKOK POST: Thailand is in dire need of an effective social safety net in light of protracted global economic doldrums.
Ammar Siamwalla, honorary economist at the Thailand Development Research Institute (TDRI), said at a seminar held by the United Nations Friday that a deterioration in the banking sector is inevitable as a protracted recession in the US plunges local firms into insolvency.
"Certain firms have begun to show balance-sheet problems, like in the automotive sector. Many firms have survived on retained earnings and cash. But more will be insolvent as time passes. The problem in the banking sector could emerge at the end of this year, the end of next year, or in the next few years. We never know,'' he said.