By Maximilian Clarke
As Thailand, and its neighbour Cambodia, grapples with the most devastating flooding in the countries’ history, more and more of the powerful Southeast Asian economy’s infrastructure is being affected.
As the world’s 30th strongest economy by GDP, and with much revenue coming from the newly industrialised country coming from exports, supply chain disruptions are having knock-on effects in countries and companies across the world.
Foremost is the country’s automotive industry. Honda have recently slowed production in both the UK and the UK due to supply chain disruptions, and most recently, Toyota have halted production in 3 Thai sites. Toyota- the world’s largest car company- have also suspended overtime in their US plants. Further, Toyota aree ‘adjusting’ production in factories in South Africa, Indonesia, the Philippines, Vietnam, Pakistan and Malaysia, with widespread losses.
A popular destination for UK visitors, tourism contributes some 6% to Thailand’s GDP. But the floods that have raged since the Summer have all but crippled this important income source.
Thailand is also one of the UK’s chief sources of rubber and palm oil, and with some 300,000 hectares of farmland submerged, devastating losses to Thailand’s exports are increased.
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