Thai industrial sentiment at one-year low despite end of political deadlock
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INDUSTRIAL sentiment hit a one-year low in Thailand in August on concerns over weak exports, slow economic recovery and a new coalition government’s plans to kickstart the economy, an industries group said on Tuesday (Sep 12).
South-east Asia’s second-largest economy has been wobbled by slowing global growth, a faltering recovery in its main trading partner China, and falling investor confidence due to prolonged political uncertainty after an election in May.
The new government led by Prime Minister Srettha Thavisin delivered its policy plans to parliament on Monday, which opposition lawmakers said was too vague.
The Federation of Thai Industries (FTI) said its industrial sentiment index in August dropped to 91.3 from 92.3 in July.
Softer global demand has crimped Thai exports, while its economy has been slow to recover, with household debt staying high, the FTI said.
The government’s policy plans were largely not as it had earlier promised, the FTI said, adding its plan to boost year-end tourism would be helpful.
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“As I listened to the plans, I asked questions on how they would do it... What we want to see from the government policy is an execution plan,” FTI vice-chair Montri Mahaplerkpong told a briefing.
The government need to prioritise its policies for the next six or 12 months to help the economy, which is “actually worse than thought”, he added.
FTI chair Kriengkrai Theinnukul said the government’s visa policy should boost the vital tourism sector, which is expected to see 28 to 30 million visitors this year. Pre-pandemic 2019 saw a record of nearly 40 million visitors.
The group said another FTI index that projects industrial sentiment over the next three months, also fell to 99.5 in August from 100.2 in July as businesses worried the new government’s policies like wage hikes might affect production costs.
Srettha on Tuesday said he would seek to adjust the daily minimum wage to 400 baht (S$15.32) as soon as possible. REUTERS
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