Mr. Kriangkrai Theeranukul, President of the Federation of Thai Industries (FTI), stated that the Industrial Confidence Index in May 2023 was recorded at 92.5, a decrease from 95.0 in April, marking a continuous decline for the second month. The index has dropped in overall orders, total sales, production volume, operational costs, and profitability.

Industry operators remain concerned about the uncertain political situation following the elections, as the government has yet to be formed quickly. Additionally, negative factors regarding exports continue to slow down due to the global economy, and exchange rates remain volatile. Operators are also facing high production costs, particularly in energy prices, while rising loan interest rates are increasing financial costs for businesses. Household debt issues are making consumers cautious about spending.

Meanwhile, the growth of the tourism sector remains a significant supporting factor, increasing demand for industrial goods, while the recovery of the Chinese economy positively impacts the export sector.

The forecast index for the next three months is at 104.3, down from 105.0 in April.

Operators are concerned about the new government's policy to raise the minimum wage, which affects costs, especially for SMEs, and may reduce foreign investment. Additionally, climate variability and drought issues will impact raw materials in the agricultural processing industry. The slowdown of the global economy and financial market volatility also pose risks to Thailand's economy in the future.

Nevertheless, the FTI has three recommendations for the government:

1. Implement measures to assist SMEs affected by rising loan interest rates, which increase debt burdens and reduce repayment capabilities, such as supporting low-interest loans to enhance liquidity, debt restructuring, and making loan guarantee conditions more flexible.

2. Encourage operators to utilize export benefits under various Free Trade Agreements (FTAs) to create a competitive edge for Thai products and increase export value.

3. Expedite the formation of a new government to avoid a political vacuum and restore investor confidence.