The surge in COVID-19 cases in recent months has caused Thailand’s industries sentiment to plummet to a 16-month low. The Federation of Thai Industries is hoping that industries sentiment in the next 3 months will recover after the relaxation of lockdown measures and wider vaccination coverage.
The Federation of Thai Industries (FTI) has announced the Thai Industries Sentiment Index (TISI) for August 2021, during which the score dropped to 76.8 points, the lowest score since May 2020.
The FTI Chairman Supan Mongkolsuthree said the latest industries sentiment score reflects the tightening of the government’s COVID-19 measures, including a lockdown throughout the month in certain provinces, leading to a decrease in economic activity.
Meanwhile, the industries themselves continue to face COVID-19 outbreaks at factories, compromising production capacity and delaying deliveries, particularly among export-focused industries.
The industrial sector is also concerned with the vaccine rollout program for their workers, which seems to be below the target, along with high uncertainties in the national economy, weakened purchasing power, and the lack of liquidity among small and medium enterprises.
The FTI is expecting the industries sentiment index to rise to 90.9 points over the next 3 months, given that the government continues to relax lockdown restrictions, along with a decrease in new COVID-19 cases after wider vaccination coverage. This should allow economic activities to gradually recover.
To help small and medium enterprises improve their liquidity, the FTI has joined hands with Siam Commercial Bank, the Export-Import Bank of Thailand, and the Bank of Ayudhya to offer a total of 40 billion baht supply chain financing offers.
Interested businesses can apply for a loan using their received orders as collateral. The campaign is expected to help give access to capital to more than 10,000 small and medium enterprises. (NNT)
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