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The Anger in Paris Is Connected to Thai Factories’ Cost Sheets

Three priorities for Thai SMEs facing living-cost and energy shocks

M31 NEWS · OPINION · Thailand, Business, Industry
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On Saturday, October 17, people took to the streets across France. Authorities put nationwide turnout at 550,000, while organisers estimated 800,000. A movement that began in mid-September at a high school in Créteil, outside Paris, protesting deteriorating classrooms and teacher shortages had, within a month, grown into nationwide demonstrations over rising living costs, declining public services and anxiety about the future. Participants in the 2018 “yellow vest” movement also joined. Violence erupted in some cities, more than 1,800 people were arrested, and hundreds of shops were looted in Paris, Marseille, Lyon and Bordeaux. President Emmanuel Macron convened an emergency meeting and announced plans to address the nation.

As someone running a factory in Thailand, I cannot see this simply as news from a distant country. Living costs lie at the root of these protests. And the energy shock driving those costs is not confined to France. As the IMF–World Bank Annual Meetings concluded in Bangkok last week, the IMF warned that reopening the Strait of Hormuz did not mean the global energy crisis was over. Each day tankers cannot sail can add at least 40 days to eventual delivery schedules, with disruption extending beyond oil and gas to naphtha and fertiliser.

Naphtha is a feedstock for plastic containers and packaging. Fertiliser costs feed into agricultural prices. Thailand is exposed to the same oil prices and sea routes. Ultimately, factory costs and employees’ grocery baskets are tied to the same thread. France’s streets show the sound a society makes when that thread is close to breaking.

What can Thai SMEs do now?

First, review European customers and logistics. France has seen protests against rising fuel costs since last month. If consumer confidence freezes, European buyers may reduce or postpone orders. Businesses shipping to France or elsewhere in Europe should contact buyers in advance, share information on delivery and customs arrangements, and build flexibility into schedules. That is how trust is maintained.

Second, recalculate energy and packaging costs. Even if international oil prices stabilise, transport and raw-material supplies take time to return to normal. Check inventories of essential materials and alternative suppliers now.

Third, pay attention to employees’ living costs. If a large, immediate wage increase is difficult, meals, commuting and basic necessities may offer practical ways to help. Quality and safety are difficult to sustain when employees’ daily lives are insecure. A small gesture can prevent a significant loss of staff.

My expectations of government are also clear. Before energy prices become a business cost, they are a household expense. At these meetings, the IMF recommended targeted support for those most exposed to the shock, alongside fiscal discipline, rather than broad measures such as export restrictions or across-the-board tax cuts. In designing energy-cost measures, I hope Thailand’s government will focus on reaching those genuinely struggling to cope, including microbusinesses and low-income households. Above all, it needs to listen before frustrations over living costs accumulate.

Protests can appear to erupt overnight, but their embers have long been growing inside the grocery basket. What we should read in the streets of Paris is a warning, not simply anger.

References

This article expresses the author’s views.

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