Major local information technology companies have confirmed they will move ahead with their investment projects as planned this year in the belief that a recovery in the local IT market will arrive in the second half.
National Broadcasting and Telecommunications Commission secretary-general Takorn Tantasit (left) has urged internet service providers to cooperate with the National Council for Peace and Order. APICHIT JINAKUL
Global research firm IDC Thailand, meanwhile, says it has no plans to revise down its latest forecast for information and communications technology spending growth of 5.5% to US$25.3 billion this year.
The overall computer market is likely to see a contraction of 20% to 2.4 million units this year.
Jeerawut Wongpimonporn, general manager of Lenovo Thailand, a unit of the world's largest computer maker, said the company will maintain its marketing and advertising budget for this year to promote its smartphone brand.
The company plans to provide financial support for those of its local authorised dealers that are facing cash flow problem.
Thailand is a top-three Asia-Pacific country for Beijing-based Lenovo, Mr Jeerawut added.
Nitipat Praweenwongwuthi, senior marketing manager at Acer Computer (Thailand), said the company is adjusting its logistics system to ensure continuous delivery for its computer products in the wake of the curfew.
"The local IT market has already reached its worst level. Most companies have closed down their non-profitable IT stores in recent months in order to survive the sluggish economic situation and poor consumer confidence," he said.
Sontiya Nujeenseng, country manager of Intel Microelectronics (Thailand), a California-based maker of computer processors, insisted the company would move ahead with this year's investment plan with no budget cuts.
"We're extending our credit terms to our dealers to 45 days from 30 days to facilitate their cash flow," he said.
Narong Intanate, executive chairman of The Value Systems Co, a unit of IT distributor ECS Holding, admitted the country's political woes these past seven months had hurt the overall economy and consumer confidence.
"We hope the military will return power to a new elected government quickly," he said.
Shrinking IT spending and the lack of an elected government will further force IT firms to merge in the future, particularly system integrators and IT retailers and stores.
Local IT companies will expand into the neighbouring countries of Cambodia, Laos, Myanmar and Vietnam to offset the falling domestic market and capitalise on new business opportunities stemming from the Asean Economic Community.
Siriwat Vongjarukorn, president of MFEC Plc, a local systems integrator with 1,600 employees, expressed concern that the country's current political situation could possibly lead to another 1997-style crisis, as an elected government is not expected any time soon.