BANGKOK (NNT) - The Industrial Confidence Index in Thailand has declined for the third consecutive month, falling to 90.0 in September from 91.3 in August, according to the Federation of Thai Industries (FTI). The weakening is primarily due to a slowdown in the manufacturing sector, affected by diminished domestic purchasing power and a sluggish global economic outlook.

 

Kriengkrai Theinnukul, Chairman of the FTI, attributes the decline to reduced household debt, lower agricultural income, and weakening demand from trade partners, particularly China. Additionally, entrepreneurs are grappling with increased financial costs due to the Bank of Thailand’s (BOT) policy rate hike.

 

The FTI predicts a further decline in the index over the next three months, with forecasts dropping to 97.3 from 99.5. However, the remainder of the year is expected to see some economic boost due to the visa-free policy, despite geopolitical tensions affecting energy and commodity prices.

 

To combat the economic downturn, the FTI has put forth three key recommendations to the government. These include urging the BOT to minimize the interest rate gap between deposits and loans and to expedite the establishment of a "Virtual Bank". The FTI also calls for the Thai Industrial Standards Institute (TISI) and the Customs Department to intensify efforts to prevent the import of substandard products. Lastly, the federation suggests promoting renewable energy trading through incentives for excess electricity purchases via the Net Metering system.

 

The FTI is also preparing for the upcoming 2023 Foreign Industrial Club (FIC 2023) Event, scheduled for November 1st. With the theme ’Reformation of Thai Economy Amidst Polycrisis’, the event aims to serve as a platform for business discussions involving both public and private sectors from Thailand and abroad. High-level government officials, including Prime Minister Srettha Thavisin, will participate, alongside diplomats and foreign investors.

 

By Woraprat Lerpaisal

 

Full story: NNT 2023-10-23

 

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But, but, but only a few days ago everything was wonderful and offshore companies were rushing to invest in Thailand.

 

What happened?

Which foreign investor can get trust when scamming foreigners seems to be a national sport all over Thailand ? It starts with the dishonest taxi drivers at Bangkok Airport, then continues with the dishonest prices in malls or in all the Sukhumvit Shops charging absurd prices for quality stuff that compare to the west. Sometimes a small and insignificant element can influence indirectly large scale trust.

13 hours ago, snoop1130 said:

The Industrial Confidence Index in Thailand has declined for the third consecutive month, falling to 90.0 in September from 91.3 in August, according to the Federation of Thai Industries (FTI). The weakening is primarily due to a slowdown in the manufacturing sector, affected by diminished domestic purchasing power and a sluggish global economic outlook.

Coupled with a slow high season Thailand could be in trouble next year.

It's bad everywhere, national debt and interest payments on bonds are eating away at the substance of many western nations, especially the USA. Industrial activity in Germany and China is slowing down and a stock market crash is expected in the next few weeks due to high yields in the bond market, why did Thailand think this would leave them unscathed? In the UK 25% are on or near the poverty line, there is rampant unemployment in China, 50% of young workers in Spain and Italy have been unemployed for years, even Phd graduates are homeless and yet Thailand thinks with a few gimmicks they can entice more tourists. Thailand at the moment seems to be a sanctuary of relative well being, the poor have warm weather and a bowl of rice, better than the ice and snow coupled with homelessness in farang land.

14 minutes ago, hotchilli said:

Coupled with a slow high season Thailand could be in trouble next year.

 

Be patient, a taxi driver will return 3 million baht to an errant tourist and all will be good!

 

 

Edited October 23, 20232 yr by 2baht

12 hours ago, billd766 said:

But, but, but only a few days ago everything was wonderful and offshore companies were rushing to invest in Thailand.

 

What happened?

Somebody woke up

The Prayut Legacy.

Unfortunately, likely to be repeated.