The manufacturing sector in Thailand has slowed for three consecutive months, and this has negatively impacted the country’s Industrial Confidence Index.
The Thai Manufacturing Confidence Index Remains Dismal.
The Federation of Thai Industries (FTI) announced that Thailand’s Industrial Confidence Index fell to 90.0 in September from 91.3 in August, marking the third consecutive monthly dip. Weak domestic demand, a weakening global economy, and a slowdown in the manufacturing sector are all to blame for this drop.
The Reasons for the Decline
Kriengkrai Theinnukul, Chairman of the FTI, attributes the drop in the index to other causes. Reduced household debt, falling agricultural revenue, and weaker demand from trading partners, particularly China, all contribute to this. The recent policy rate increase by the Bank of Thailand (BOT) has created difficult financial conditions for business owners as well.
Events and Recommendations from FTI
To combat the economic crisis, the FTI has proposed three major proposals. These recommendations include making it easier to establish a “Virtual Bank,” decreasing the spread between deposit and loan rates, and ramping up efforts to curb the import of low-quality goods. The federation further proposes incentivizing the trading of renewable energy by purchasing of excess electricity through the Net Metering system.
The FIC 2023 Event is scheduled for November 1st, and the FTI is also getting ready for that. The event, titled “Reformation of Thai Economy Amidst Polycrisis,” will serve as a platform for productive dialogue between the public and commercial sectors of Thailand and other countries. The event will feature prominent government officials like Prime Minister Srettha Thavisin, as well as diplomats and international investors.
National News Bureau of Thailand
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