Survey reveals optimistic growth outlook for 22 industries in 2024
Twenty-two industries have demonstrated growth, while 12 are battling contraction, according to a recent report by the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB), which revealed the findings from a comprehensive survey on likely industry trends in 2024.
Covering insights from 46 industrial groups across five regions, the survey highlighted notable patterns and concerns shaping the industrial landscape.
According to the survey, the 22 industries demonstrated growth compared to the previous year, indicating optimism despite global economic uncertainties. Notable sectors projected to expand by 6-10% include air-conditioning units, cosmetics, medical equipment manufacturing, renewable energy, rubber, and sawmill and wood processing. Additionally, 13 industry groups are expected to experience modest growth ranging from 1-5%, encompassing areas such as environmental management, printing, and packaging.
However, concerns loom over sectors facing contraction. Four groups, including petrochemicals and electricity and electronics, are anticipated to shrink by 1-5%, while five others, such as gas and furniture, could contract by 6-10%. Three sectors, including granite and marble, are projected to see significant declines exceeding 10%.
The survey also shed light on factors driving business growth, including increased demand fuelled by economic stimulus measures and tourism, rising orders from key trading partners, and efforts to achieve free trade agreement goals. Moreover, initiatives promoting investment in renewable energy and adjustments in raw material prices have been identified as contributing factors.
However, concerns persist, notably surrounding political conflicts, escalating electricity costs, and challenges associated with minimum wage adjustments. High financial costs and the influx of low-quality products into the ASEAN market further add to apprehensions. Non-tariff trade barriers, especially those related to environmental measures, also pose significant challenges to industry stability.