The Federation of Thai Industries (FTI) said on Wednesday that the Thai Industries Sentiment Index (TISI) has increased for the first time in four months in May.
The index rose up from 75.9 points in April to 78.4 in May, the first increase since the coronavirus outbreak.
Supant Mongkolsuthree, FTI’s chairman, said the containment of the outbreak, the reopening of businesses which began on May 3, and the shortening of the curfew later on in the month were major contributors to the improved sentiment.
The curfew has now been lifted as of Monday, June 15, and the country is in Phase 4 of the easing period which has seen more businesses reopen.
Supant said other factors contributed to the increase such as government measures to help businesses most affected by the outbreak and the Bank of Thailand (BOT)’s decision to bring their policy interest rate down to 0.5 per cent.
Businesses are still concerned, however, over the slowdown of the Thai and global economy which is impacting trade, investment and employment.
SMEs are also experiencing a lack of liquidity.
The forward index for business sentiment in the next three months has also increased from 88.8 points in April to 91.5 in May, but that is still below the 100-mark which means that sentiment is low.
Supant said businesses are hoping that Phase 4 will increase more domestic economic activities.
Many countries are also beginning to ease up on their lockdown measures and that should bring more orders from abroad as well, but the demand will still be low, he added.
Supant said businesses are now asking the government to accelerate loan approvals for SMEs under the BOT’s 500 billion baht soft loan policy, and for the Thai Credit Guarantee Corporation to provide more loan guarantees for SMEs.
The FTI is also encouraging government agencies to use an online system for providing licenses, paying fees and other related services.
