14. Thailand Floods and Impact on Private Sector

The unprecedented flooding in Thailand during May–Oct 2011 had a major impact on the private sector in general, and small and medium enterprises (SMEs) in particular with almost 90 % of the total damage and losses estimated for this mega disaster. Although the country has been hit by floods in the past, this time the damages is much more severe causing direct damage to the industrial sector than before, as many of the industrial estates in the central region were hit hard, with factories forced to halt operation for than a month. The floods not only had a major effect on local automotive production and supply chain disturbances but also caused short-term effect on regional and global supply of automotive parts and vehicle exports. The severe effect on auto parts makers caused a serious disruption in the supply chain structure. This situation had a cascading effect on automotive assembly and production in Thailand. No body will wish any further natural disaster affect Thailand as it did in year 2011. However, there is a likelihood of increase risks due to changing climate-affecting Thailand.