BANGKOK, June 14-The industrial sentiment index in May 2023 continued to decline. It is recommended to speed up the establishment of the government to build investor confidence. along with specifying if the establishment of the government is delayed dragging on until the end of the year May reduce the country's GDP by 1-1.5%.

Mr. Kriangkrai Thiennukul, President of the Federation of Thai Industries (FTI) and Mr. Montri Mahapruekphong, Vice Chairman of the Federation of Thai Industries (FTI), jointly revealed the results of the survey of the Industrial Confidence Index in In May 2023, from the FTI's survey of 1,327 entrepreneurs covering 45 industrial groups, the score was at 92.5, down from 95.0 in April. Declining for the second consecutive month when considering the components of the index. It was found that all components fell, including the index, total orders, total sales, production volume. operating costs and operating results

confidence of industrial operators continued to decline from the previous month There was a negative factor from Thai exports that continued to slow down. from the uncertain global economic conditions As a result, demand from trading partner countries decreased. while the exchange rate continues to fluctuate In addition, entrepreneurs still face the problem of production costs that remain at a high level. especially energy prices while the loan interest rate is in an upward direction As a result, operators have increased financial costs. Household debt problems cause consumers to be cautious in spending. There are also concerns about uncertain post-election politics. And the government cannot be established quickly, however, there are still supporting factors from the expansion of the tourism sector. causing the demand for industrial products to increase while the recovery of the Chinese economy has a positive effect on the export sector

As for the industrial sector index, it is forecast for the next three months at 104.3, down from 105.0 in April. Because entrepreneurs are concerned about the policy of raising the minimum wage of the new government. This will affect the operating costs of Thai entrepreneurs, especially SMEs, as well as reduce foreign investment, while climate variability and drought affect raw materials in the agricultural processing industry. global economic slowdown and the volatility of the global financial economy. It is also a risk factor for the Thai economy.

In this regard, the private sector has recommendations to the government that are

1) Issuing measures to assist SMEs entrepreneurs who are affected by the increase in loan interest rates which are adjusted in line with the policy interest rate. As a result, operators have increased debt burden and reduced ability to repay debt. for example, supporting low-interest loans to increase liquidity debt restructuring adjusting credit guarantee conditions to be more flexible

2) Encourage entrepreneurs to use more export privileges under various Free Trade Agreements (FTAs). to create a handicap for Thai products and help increase export value

3) Accelerate the establishment of a new government to avoid a political vacuum And to build confidence in investors because foreign investors are waiting to see the clarity from the establishment of a new government now In addition, if there are protests down the street like the past The targeted 30 million tourists may be reduced for safety reasons. regarded as an uncontrollable factor. However, if the government can be formed in August It was the right time. But if the establishment is delayed or extended until the end of 2023, the country's GDP will decrease by 1-1.5% from the expected growth of 3.5%, it may be reduced to GDP grows only 2.5%, etc.

In this regard, FTI has compiled data from the survey results of the Industrial Confidence Index. And economic and industrial indicators from various agencies for the past 3 years are prepared as a Dashboard to be published on the Economic and Industrial Data Center (iDS) website of the FTI to facilitate entrepreneurs. and the general public to have access to useful information in business operations. which can access the service of such information at www.fti.or.th/ids .-Thai News Agency

Source: Thai News Agency