24-7-2023 (BANGKOK) Thailand’s industrial sentiment showed signs of improvement in June, marking the first increase in three months. The rise was attributed to higher domestic demand, but concerns persisted over sluggish exports and uncertainty surrounding the formation of a new government, according to a statement by the Federation of Thai Industries (FTI) on Monday.
The FTI reported that the industrial sentiment index rose to 94.1 in June from 92.5 in May, indicating a positive shift in the business outlook. Domestic demand received a much-needed boost from the ongoing recovery in the crucial tourism sector. However, Thailand’s exports, which significantly drive the country’s economic growth, remained subdued due to weak global demand.
FTI vice chair Montri Mahaplerkpong mentioned during a briefing that the FTI anticipates around 29 to 30 million foreign tourists this year. This figure is notably lower than the nearly 40 million foreign visitors recorded in the pre-pandemic year of 2019.
Adding to the economic uncertainties, Thailand’s political landscape remains unsettled following the national election in May. The formation of a new government is yet to materialize, creating a sense of ambiguity and concern in the business community.
Pita Limjaroenrat, leader of the Move Forward party, which emerged victorious in the May election, has faced obstacles in becoming prime minister. His supporters claim that unfair rules prevented his ascension, prompting them to stage protests in support of him.
The next parliamentary vote for a new prime minister is scheduled for Thursday. The Move Forward party garnered significant support from the youth, primarily due to its anti-establishment policies, which include plans for military reform, ending business monopolies, and amending the royal insult law that protects the powerful monarchy from criticism.
In light of the prevailing uncertainties, another FTI index that forecasts industrial sentiment over the next three months declined to a five-month low in June.
