InfoQuest (October 13, 2021) - According to Mr. Supant Mongkolsuthree, Chairman of the Federation of Thai Industries (FTI), the Thai Industries Sentiment Index (TISI) was 79.0 in September, up from 76.8 in August, marking the first increase in the past six months.
The government relaxed the pandemic prevention measures as a result of decreasing number of confirmed cases in a single day and allowed places including shopping malls to resume operation, thus boosting the TISI growth.
The implementation of "Bubble and Seal" measures in factories have brought the pandemic situation under control and reduced the number of infected workers. With the increase of domestic and foreign demand, Thai factories have expanded their production capacity.
"After the lockdown was lifted in September, TISI rose from 76.8 to 79.0", said Supant.
The soaring raw material costs, oil prices and freight rates give rise to increased costs, and floods in some parts of Thailand may impair food supply chain to varying degrees.
Problems such as blocked and stranded cargo ships, supply delays, container shortages, high sea freight rates, and chip shortages in automobile and electronic and electrical industries remain unsolved.
Operators worry more about climbing oil prices and loan interest rates, but less about pandemic situation, domestic economic and political landscape, global economy and exchange rate.
The TISI forecast was upgraded from 90.9 in August to 93.0 thanks to the progress made in obtaining and vaccinating COVID-19 vaccine, as well as the policy of easing lockdown. Operators also believe that the government should continue to introduce economic stimulus measures to boost economic recovery.
FTI made the following recommendations to the government:
1. Conduct disaster mitigation and relief and formulate feasible flood control strategies;
2. Keep energy price and oil price at a reasonable level to reduce the cost of operators;
3. Further relax restrictions on commercial activities;
4. Introduce measures to stimulate the domestic economy;
5. Extend the grace period of debt service for another six months to one year.
Source: InfoQuest, by Tanawat Suayaem/ Rachada Kongkhunthian, translated by Xinhua Silk Road
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