FTI urges all sides to avoid stoking divisions

The Thai Industries Sentiment Index (TISI) fell for the 26th month in a row to 89 points in October. Car production in October plunged 67.62 per cent year on year to 49,439, its lowest level in nine years. An index score below 100 points represents weak confidence.
FTI chairman Payungsak Chartsuthipol said manufacturing enterprises showed much lower confidence as many had been affected by severe flooding for several months.
Payungsak added that the index was expected to edge down in November as many enterprises continue to suffer from inundation, and the private sector is concerned that political conflict will resume because of the amnesty issue.
“To ensure growth, every part of society should seek a consensus solution to avoid fighting. Enacting an amnesty would be divisive. Although we should follow majority rule, any action must be carefully considered, based on reason and principles, to prevent future conflict,” said Payungsak.
The TISI measuring future confidence, however, increased from 94 points in September to 101.3 points in October, as manufacturers expect signs of recovery in the next three months. First of all, they expect a spike in demand after the water recedes.
However, Payungsak pointed out that the future index last month did not include political issues. The index could fall again if any more problems surface, he said.
Other indices related to industrial enterprises’ confidence also dropped last month. The index measuring overall income was down from 88 points in September to 84.3 points. The major concerns fuelling the drop in industrial confidence were suspended operations and high operating and logistics costs.
For all industries, including textiles, leather goods, steel, wood, automobiles and parts, agricultural machinery, electronics and electrical appliances, software, plastic products and printing, the index was lower than 100.
These industries saw lower production and sales, while exports also faced difficulties to many markets due to the volatile global economy.
Meanwhile, auto production this year will fall to only 1.5 million units from the previously expected 1.6 million this year as the industry has been seriously affected by the flooding, according to the FTI.
The spokesman of the federation’s Automotive Industry Club, Surapong Paisitpattanapong, said car production was expected to drop continuously in November, despite some plants restarting operations in the middle of this month.
Thailand produced 1.33 million cars in the first 10 months of this year.
The FTI has launched a website to sell essential products at a low price for flood relief such as plastic boats, water pumps and cleaning liquid. Flood victims can visit www.ftimarket.net to order goods at factory prices.