Bangkok F.T.I. reveals the September Industrial Confidence Index was at 90.0, falling for the third consecutive month. Worried that the value of the baht will weaken Proposing the government to adjust loan interest rates Accelerate the establishment of a Virtual Bank
Mr. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (F.T.I.), and Mr. Pittipat Manbuppachat, Deputy Secretary-General of the Federation of Thai Industries (F.T.I.), jointly revealed the results of the confidence index survey. Industrial sector For September 2023, it was at the level of 90.0, decreasing from 91.3 in August. which dropped for the third month in a row When considering the components of the index value It was found that almost every component decreased, including the index, overall orders, overall sales, production volume. and operating results Except for operating costs that have improved.
Sentiment in the industrial sector in September 2023 decreased as a result of the production sector slowing down as domestic purchasing power weakened from household debt problems and falling agricultural income. Meanwhile, demand from trading partners slowed in line with the global economic situation. In particular, the Chinese economy has slowed down due to the real estate crisis that continues to put pressure on the regional economy. and the depreciation of the baht due to capital outflows from the country in the past due to concern over interest rate increases by the US Federal Reserve (Fed), resulting in higher prices of imported raw materials. Meanwhile, the increase in the policy interest rate of the Bank of Thailand (BoT) resulted in increased financial costs for entrepreneurs. In addition, the flooding situation in many areas is an obstacle to the transportation of goods, including affecting agricultural raw materials. However, this month there are still supporting factors from government measures to help with people's living expenses by reducing the price of diesel fuel to no more than 30 baht/liter and reducing the electricity price from 4.45 to 3.99 baht/unit, resulting in lower industrial production costs and transportation costs. go down Reflected from the index Operating costs increased from the previous month. Including the continued recovery of the tourism sector, it still has a positive effect on domestic consumption.
F.T.I. has recommendations to the government sector as follows:
1) Propose to the BoT and both public and private financial institutions. Ensure that the difference between deposit interest rates and loan interest rates is reduced so as not to be a burden on entrepreneurs. Including expediting the establishment of a branchless commercial bank (Virtual Bank) as soon as possible.
2) Propose to the Industrial Standards Institute (TISI) and the Customs Department. Strict in detecting imported products that are not of good quality from abroad. To ensure the safety of consumers and protect the domestic industry.
3) Propose that the government sector supports the purchase of excess electricity back in the Net Metering system and encourages the trading of electricity from renewable energy (Renewal Energy) to support carbon neutrality (Carbon Neutrality).
Mr. Pittipat revealed that from a survey of 1,324 entrepreneurs covering 45 industrial groups of FTI in September 2023, it was found that the factors that entrepreneurs are increasingly concerned about include the world economy at 84.0 percent, the rate Loan interest is 69.5 percent, the domestic economy is 45.6 percent, respectively. Factors that are of less concern include the price of oil (55.2 percent), the political situation in the country (43.5 percent), and the exchange rate. (Exporter's perspective) The reference exchange rate is the baht against the US dollar at 41.8 percent, respectively.
For the next 3 months, the index is expected to be at 97.3, down from 99.5 in August. The risk factor comes from concerns about the trend of energy prices increasing due to demand during the winter. Meanwhile, the lingering geopolitical conflict has affected energy and commodity prices. However, there are still positive factors from the tourism promotion measures granting free temporary visas to tourists from China and Kazakhstan for 5 months, which is expected to help stimulate the economy for the rest of the year. 2023
Source: Thai News Agency