Bangkok: Government measures have contributed to a 2.52% expansion in the Manufacturing Production Index (MPI) in December 2025, as revealed by the Office of Industrial Economics (OIE).
According to Thai News Agency, the MPI for December reached 93.27, showing a 2.52% increase compared to the same period last year. This growth was propelled by automotive production growth, sustained industrial goods exports, and government initiatives to boost purchasing power.
Mr. Supakit Boonsiri, Director of the OIE, highlighted the role of increased vehicle production, particularly electric vehicles, alongside the expansion of industrial exports for the 18th consecutive month. Consumer spending also saw a boost through schemes like the "Half-Price Plus" co-payment and "Travel Well, Get a Refund," as well as a reduction in the policy interest rate. Despite this growth, the overall MPI for 2025 is projected to contract slightly by 0.78%, reaching 95.81.
The industrial sector faced pressures in December 2025, including the strengthening Thai baht, geopolitical tensions, and unrest along the Thai-Cambodian border, affecting industries such as consumer goods and automobiles. A decline in international tourism further impacted related industries, including frozen pork, fish, and beverages.
Looking forward to January 2026, the OIE has signaled caution due to domestic and international factors affecting industry. The European Union's CBAM measures, effective from January 1, 2026, require Thai steel, iron, and aluminum industries to adapt swiftly. The OIE is driving the strategy for Thai steel to transition to Thai Green Steel (TGS) to meet green trade regulations.
Key industries positively impacting the December 2025 production index included palm oil, which saw a 45.64% expansion, and the automotive sector, which grew by 5.02%, driven by passenger and electric vehicles. The electronic components sector also experienced a 10.52% expansion due to increased global orders.
Conversely, sugar production contracted by 17.71% due to lower sugarcane milling volumes and border-related disruptions. Other general-purpose machinery and beverage production sectors also saw declines, with coffee, tea, and herbal powders contracting by 85.89% due to halted instant coffee production.