TISI increased for the first time within 6 months due to producing new products for New Year’s Festival, Private Sector demanding for government to develop “Made in Thailand” in a concrete term
Chairman of the Federation of Thai Industries (Mr. Supant Mongkolsuthree) disclosed that the survey of Thailand Industrial Sentiment Index (TISI) as of November 2019 was at 92.3, increasing from 91.2 in October 2019. This increase was the first time during the past six months, starting from June 2019. It was because the entrepreneurs had accelerated to produce product to compensate for less working days in December 2019. The volume of purchase order and sales had increased both domestically and internationally, especially for fashion product, food, health and beauty products. Three products had served for Christmas and New Year’s Festival. Moreover, the government’s economies stimulates package had led to positive sign for domestic consumption.
According to the nationwide survey of entrepreneurs (1205 persons) on November 2019, the entrepreneurs (60.1%) had some worries on exchange rate (baht pm us dollar). Some entrepreneurs (60.1%) had concerned about oil price while others (42.2%) worried on local politics. The factors which led to less worries for the entrepreneurs included the global economic condition and the interest rate of loan at 69.5 and 20.7
However, the entrepreneurs had worried about the delay of the Act of budget expenditure of 2020. Such delay may affect the government expenditure and public investment, the risk factors resulting from global economic slowdown and the uncertainty of US-China trade war negotiation.
The forecast of TISI for the next 3 months is at 101.3, reducing from 102.9 in October 2019. The entrepreneurs worry about the increased minimum wage which would affect the operation cost of SMEs and the drought which would affect the volume of new materials regained for the agro-promising industry as well as the baht appreciation in the region which has a tendency to be appreciated and lower the prior competitiveness of expat product. In case USA and China can reach an agreement on trade deal, it would generate the positive sign of Thai report.
The recommendations which are made to the government include
- Seek ways to reduce operation cost of entrepreneurs (e.g. reducing water wage and electricity charges after the increase of minimum wage on 1 January 2020 in order to compensate for the increased wage.
- Propose to the government to focus on “Made in Thailand” which relates to the government procurement in support for local governments.
