Bangkok:The industrial confidence index for September increased to 90.7, prompting the Federation of Thai Industries (FTI) to call on the government to address the flooding situation proactively, reduce energy costs, and promote Made in Thailand (MiT) products.
According to Thai News Agency, the FTI highlighted the index rise from 89.7 in August, supported by a reduction in electricity rates from 3.95 baht to 3.89 baht per unit for September to December 2026. This relief helps businesses and the public by lowering costs. Additionally, businesses have increased orders in anticipation of the year-end festive season, particularly in sectors such as processed food, furniture, fashion, and lifestyle products.
Sales of passenger cars, especially battery electric vehicles (BEVs), are expected to rise significantly, with a 100.8 percent increase compared to last year. Plug-in hybrid electric vehicles (PHEVs) also saw a 35.3 percent increase in the first eight months of 2026. The demand for technology products is growing due to investment in AI infrastructure and data centers. Moreover, the 'Thai Helps Thai Plus' project helps small retailers by improving their credit access through the AI-powered 'Whispering Bird' system.
Despite these positive trends, the industrial sector faces challenges, particularly from flooding in the central and eastern regions, which has disrupted supply chains and impacted transportation. The FTI is monitoring the situation and working with the government on relief measures to help businesses resume operations swiftly.
Energy costs remain a concern, with the average diesel price rising 7.29 percent in September to 40.28 baht per liter, affecting profit margins, especially for SMEs. International shipping costs have also increased, with significant rises in freight rates on routes to Australia and the US, impacting export costs.
SMEs face challenges from price competition with imported goods, hindering their ability to reduce sales prices and expand operations due to limited access to funding. Entrepreneurs are less concerned about domestic economic conditions and government policies but are worried about energy prices, the global economy, and access to credit.
Looking ahead, the industrial confidence index is projected to reach 97.70 in the next three months. Factors contributing to this positive outlook include easing global trade tensions and expected demand for construction materials and appliances due to flood repairs. However, ongoing risks from flooding, geopolitical conflicts, and raw material supply uncertainties remain.
The FTI urges the government to implement key measures to mitigate these impacts, focusing on flood management, energy conservation, and the promotion of MiT products.