InfoQuest, (May 25, 2019) -- In April 2019, the Thai Industries Sentiment Index (TISI) stood at 95.0, lower than March's 96.3, the first drop in four months, according to Mr. Supant Mongkolsuthree, honorary chairman of the Federation of Thai Industries (FTI). There were four main reasons for the fall.
First, also most importantly, Thai enterprises brought forward their production plan in last month in order to make up the production lost during the Songkran Festival in April when their employees took a continuous leave.
Second, they concerned that Thailand may see a drop in purchasing power, especially in drought-stricken regions, and a slowdown in export growth due to the decelerated world trade.
Third, they also expressed concern for domestic political landscape, hoping that a new government can be set up as soon as possibleto formulate new economic, trade and investment policies.
Fourth, as enterprises feared climbing production cost and fluctuating baht exchange rate may harm their competitiveness, and US-China trade row may deal a blow to Thai exports, the TISI is expected to drop from 104.2 in March to 101.9 in the three months to come.
In particular, Thai enterprises' concern over global economic growth, oil price, exchange rate and domestic political landscape was intensified in April, but that over loan interest rate was on the decline.
Moreover, they have put forward some proposals to the government, including offering support in capital sources to SMEs by, for example, an appropriate adjustment to banks' loan rules so as to make banks more flexible in loans and raise the possibility in obtaining capital; streamlining procedures on applying for a license from government bodies; speeding up the implementation of the Regulatory Guillotine project.
Source: InfoQuest, translated by Nisarat Wichiensri / Tanawat / Rachada, translated by Xinhua Silk Road
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