Mr. Wiwat Hemmantharop, Vice President of the Federation of Thai Industries (FTI) stated that the industrial confidence index in March 2023 stood at 97.8, an increase from 96.2 in February 2023, marking the third consecutive month of growth and the highest level in a decade since January 2013.

The supporting factors include the expansion of domestic demand and purchasing power in the regions due to rising agricultural income, while the tourism sector continues to recover from the growth in foreign tourists and government measures to promote domestic tourism, resulting in increased demand for industrial products. Additionally, the construction sector's expansion positively impacts related industries.

However, entrepreneurs remain concerned about high production costs, particularly the fluctuating prices of raw materials and energy, as well as electricity prices. They urge a reconsideration of the Energy Regulatory Commission's (ERC) decision to reduce the automatic electricity tariff (FT) for the period from May to August 2023 to below 4.40 baht/unit. Additionally, the rising interest rates are a burden for entrepreneurs, especially SMEs, while weak foreign demand due to the global economic downturn and the volatility of the Thai baht pose risks to Thailand's export sector.

For the three-month forecast index, it is expected to be at 106.3, up from 103.2 in February, as the Thai economy shows signs of continued growth driven by the tourism sector and domestic consumption. The reopening of China is expected to support Thailand's tourism and exports in the second half of the year. However, there are still risks from global economic issues and escalating geopolitical problems.

Nevertheless, the FTI urges the government to 1) reconsider the ERC's decision to reduce the automatic electricity tariff (FT) in the second period (May-August 2023) to below 4.40 baht/unit; 2) promote the opening of new export markets, such as in the Gulf Cooperation Council (GCC), MERCOSUR, and the Pacific Alliance, particularly for automotive products, electrical appliances, air conditioners, rubber products, and furniture; and 3) expedite the resolution of forest burning issues according to the special plan to address dust pollution in 2023.