Travel subsidy, spending on general election to boost manufacturing index: Suriya
The extension of the government's travel subsidy scheme and the upcoming general election are the two main factors that would push this year’s manufacturing production index (MPI) to expand 1.5 to 2.5% year on year, the Ministry of Industry said on Tuesday.
The ministry forecast gross domestic product (GDP) of the industrial sector would expand 1.5-2.5% compared to the previous year.
The government’s “Rao Tiew Duay Kan” (We Travel Together) co-payment scheme, which is now in fifth phase, will greatly help boost the tourism industry and consequently private consumption, especially in service sectors, Industry Minister Suriya Juangroongruangkit said.
The recovery of the tourism sector has also been fuelled by China’s lifting of travel restrictions since early this year, he added.
Suriya said other economic stimulus measures, including the “Shop Dee Mee Kuen" (Shop and Payback) scheme, would also impart momentum to the economy. But the long-awaited general election tentatively scheduled in May 7, is expected to stimulate the economy nationwide across several sectors.
Thailand’s last election was held in March 24, 2019 in which Prayut Chan-o-cha’s Palang Pracharath received the most votes and won 116 of 500 House of Representative seats.
Suriya pointed out, however, that there were still factors that could obstruct the projected expansion of MPI and industrial GDP, such as the recession in the global economy, a hike in energy price, as well as increasing interest rates and household debt.
The ministry reported that January’s MPI was at 99.82 points, expanding 6.61% from the previous month with 62.31% of production capacity being used. Suriya said the big jump in last month’s MPI was due to increased economic activities following an influx of foreign visitors to Thailand during the New Year.
He added that the decreasing global demand due to the recession in Europe and the United States would have minimal impact on industries that target domestic markets, such as automotive manufacturing, oil refinery, fashion and clothing, and beverage.
The ministry estimated that MPI in the following months would continue to grow due to the increasing number of foreign tourists and higher domestic consumption.
