Bangkok, Easy E-receipt pushes the industrial confidence index up. Private sector proposes to expedite discussion on shipping lines Add containers-ships to transport goods
Mr. Montree Mahaprukphong, Vice President of the Federation of Thai Industries (F.T.I.) revealed the results of the industrial confidence index survey in January 2024 at a level of 90.6, increasing from 88.8 in December 2023, with supporting factors from the expansion of domestic demand reflected from Product orders and sales accelerated from the previous month. Especially consumer products to support spending during the Chinese New Year festival. In addition, the benefits of the Easy E-receipt measures during the period 1 January – 15 February 2024 help stimulate spending in the country. and measures to promote tourism, Visa-Free, resulting in the period of January 2024, there will be more than 2,743,147 foreign tourists traveling to Thailand, an increase of 27.8 percent (YoY).
Meanwhile, the export sector has improved following demand i
n the world market. and increased orders from important trading partners such as the United States, the Middle East, and India. However, There are also negative factors from the increase in the minimum wage and high interest rates on loans. As a result, operating costs have increased, especially for SMEs, while financial institutions have become more stringent in approving loans due to concerns about household debt problems. In addition, import and export entrepreneurs Still facing rising transportation costs. both from freight rates Various fees and insurance costs Caused by attacks on shipping ships in the Suez Canal and the Red Sea. Meanwhile, shipping between Asia and Europe takes longer. Due to having to change the shipping route through the Cape of Good Hope
From a survey of 1,331 entrepreneurs covering 46 industry groups of the Federation of Thai Industries (F.T.I.) in January 2024, it was found that factors that entrepreneurs are increasingly concerned about include the global economy (82.5 percent),
loan interest rates. 73.7 percent, oil price 50.1 percent, domestic economy 45.2 percent, respectively. Factors that are of less concern include the exchange rate. (Exporter’s perspective) The reference exchange rate is the baht against the US dollar at 41.5 percent, the political situation in the country at 35.0 percent, respectively.
Meanwhile, the index is forecast for the next 3 months to be at 98.4, increasing from 96.2 in December 2023, with supporting factors from domestic and international demand that is gradually recovering. Including measures to resolve informal debt, measures to suspend SME debt payments. However, there are still factors that need to be monitored, such as the unrest in the Red Sea area that is likely to expand widely, which may affect Thailand’s export sector in the future. Including affecting the production supply chain (Supply Chain) and energy price fluctuations. In addition, entrepreneurs are concerned about the slowdown of the Chinese economy. from the real estate sector cris
is As a result, the purchasing power of Chinese consumers is weak. and demand for products from Thailand decreased
Suggestions to the government sector
1) Propose that the government sector hasten discussions with shipping lines to increase the number of cargo ships. and containers entering the country To prevent shortages of containers and ships and to request clarification of shipping plans. and details of the freight rate (Freight rate) that have been increased clearly.
2) Propose that the government sector facilitates trade on the Thai-Myanmar border, including taking care of Thai investors doing business. In order not to be affected by the unrest situation in Myanmar
3) Accelerate consideration and approval of the 2024 budget, including preparation for spending the budget to meet the target. within the fiscal year Especially the investment budget and government procurement. To help stimulate the economy, etc.
Source: Thai News Agency