Bangkok - Nikon Corp's unit in Thailand laid off 1,500 of its subcontracting staff amid signs that Thailand's exports are slowing, media reports said Saturday. The Japanese camera-manufacturing giant has decided to terminate the employment of 1,500 non-permanent staff at its factory in Ayuthaya province, the Bangkok Post said, quoting provincial labour official Pongthai Musikapong.
The job losses resulted from declining orders from the United States, Japan and Canada, and it was the first mass layoff announced by a major Japanese investor in Thailand. Japan accounts for the lion's share of foreign direct investment in Thailand.
Earlier this week, the US auto giant General Motors Corp announced plans to suspend operations at its factory in Rayong province from December to January with workers receiving 75 per cent of their wages. It also offered early retirement to 258 employees.
Exports account for about 70 per cent of Thailand's gross domestic product.
While most export industries have enjoyed robust sales in 2008, they were expected to suffer 20- to 30-per-cent declines in orders next year as the kingdom's main markets - the United States, Europe and Japan - go into recession.
An estimated 500,000 labourers stand to lose their jobs next year, officials at the Federation of Thai Industries said.
In October, Thailand's exports reached 15.3 billion dollars, up 5.2 per cent from the same month a year earlier. It was the slowest growth rate reported since July 2002.
Exports of electronic products and electrical appliances, two of the country's top export items, dropped last month 4.2 per cent and 16 per cent, respectively, according to figures released by the Commerce Ministry.
Given a good performance in the first 10 months of the year when Thailand's exports grew 21.7 per cent to reach 151.2 billion dollars, the kingdom was still expected to reach its target of 15- to 20-per-cent growth this year, but growth would slow to 5 per cent in 2009, the ministry forecast.
