Bangkok: September’s industrial confidence index rose for the first time in seven months, reflecting confidence in the new government and growing investment.
According to Thai News Agency, the Federation of Thai Industries (FTI) reported that the Industrial Confidence Index rose to 87.8 in September, up from 86.4 in August. This increase is attributed to the rapid formation of a new government, which has bolstered private sector confidence and facilitated the implementation of economic and investment stimulus measures. Additionally, small and medium-sized enterprises (SMEs) have benefited from easier access to credit due to relaxed conditions from the Ministry of Finance, allowing the Small Industry Credit Guarantee Corporation to guarantee loans to non-bank financial institutions.
Exports of agricultural and electronics products have continued to expand, particularly in the Malaysian, Vietnamese, and Taiwanese markets. Domestic electric vehicle sales are also on the rise, fueled by the “BIG Motor Sale 2025.”
Foreign direct investment (FDI) is expected to grow, with foreign investment increasing by 125 percent year-on-year from January to August 2025, totaling 225.536 billion baht. The Eastern Economic Corridor region has seen a significant rise in new foreign juristic persons registered, contributing to 33 percent of total investment.
However, challenges remain. The strengthening of the baht against regional currencies has affected exporters’ income and the competitiveness of the Thai industrial sector. Agricultural production has been impacted by heavy rains and flooding, affecting raw materials and processed foods. Additionally, the prolonged closure of the Cambodian and Mae Sot-Myawaddy border checkpoints has drastically reduced border trade values.
Factors of decreased concern include the domestic economy, government policy, and access to credit, whereas concerns over the global economy and exchange rates continue to pose risks to the recovery of the Thai industrial sector.
The index is expected to continue its upward trend, reaching 91.8 in the next three months, driven by government economic stimulus policies and upcoming events like the 33rd SEA Games, which are anticipated to boost tourism and local income distribution.
Nonetheless, risk factors such as US import tariffs and ongoing Thai-Cambodian border disputes could impact economic activity. The private sector has recommended measures to the government, including promoting Made in Thailand products, reducing energy costs, and encouraging the use of tools to hedge against foreign exchange risk.