InfoQuest (November 20, 2019) -- Mr. Suphan Mongkolsuthre, chairman of the Federation of Thai Industries (FTI), announced the industrial prosperity index in October 2019 at 91.2, dropping from the 92.1 in September 2019 and the lowest over the past 17 months since June 2018.
Worries among entrepreneurs included: regional slowdown of purchasing power; financial problems of SMEs because of the increasing limitations of financial agencies on loan approval; longstanding China-US trade war; the declining price competitiveness caused by baht appreciation.
Encouraging factors in this month included the increase of sales amount and order of export enterprises. That should be attributed to foreign clients’ ordering of festival items for the year-end, particularly fashion and food; the government’s "food, shopping, and consumption" program has also boosted the sales of consumables.
The industrial prosperity index in the coming three months will drop from 103.4 in September 2019 to 102.9, mainly caused by worries of entrepreneurs over the uncertainties of domestic and global economy, such as Brexit and the US’s cancellation of GSP.
FTI has offered such suggestions: after BOT announced to revise relevant laws and regulations to boost capital outflow and alleviate pressure over baht, the government should make enterprises know the relevant knowledge of foreign exchange risk management; move faster in Thailand-Europe FTA negotiation; move faster in public investment to attract sustained investment from private sector and affect the value chain of SMEs positively; measures should be released to stimulate economy and domestic expenditure and make up for the slowing export caused by global economic slowdown; accelerate negotiation with US over the restoration of GSP rights.
Source: InfoQuest, by Nisarat Wichiensri / Rachada / Kasamarporn, translated by Xinhua Silk Road
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
