TCC’s confidence index hoisted by cave rescue
Business confidence continued to rise in July, boosted by the growing economy, better income distribution and Thailand’s improved image following the successful rescue of the Wild Boar football team from Tham Luang cave.
The Thai Chamber of Commerce (TCC) confidence index, which gauges nationwide business sentiment, climbed to 48.6 points in July from 48.4 in June and 47.7 in May — the month it debuted.
The TCC confidence index sampled 326 TCC members nationwide covering the agriculture sector, the industrial sector, traders and the service sector.
“Thailand’s overall business sentiment has improved, be it the country’s growing economy, the government’s financial aid measures to small and medium-sized enterprises, no-fee service for the digital banking, the World Cup 2018, which boosted sales of restaurants and food businesses, or Thailand’s better image from the football team rescue,” said Sauwanee Thairungroj, president of the University of the Thai Chamber of Commerce (UTCC).
However, with the index lower than 50 points, Ms Sauwanee said the business sector remains concerned about fragile agricultural product prices, particularly for rubber, oil palm and rice, as well as negative factors including the boat tragedy in July that claimed the lives of 47 Chinese tourists off the coast of Phuket.
Higher oil prices, ongoing flooding in the Northeast and the illegal, unreported and unregulated fishing issue are also major areas of concern, she said.
Thanavath Phonvichai, vice-president for research at the UTCC, said July’s index reflects Thailand’s continued economic recovery and broader-based income redistribution.
But he said key concerns about low farm product prices remain. “Export and tourism sector will be the main drivers for economic growth this year,” Mr Thanavath said.
The university forecasts the country’s economic growth to stay at 4.5-5% for the full year, based on a second-half projection of 4.6%, up from 4.8% in the first half of the year.
Kalin Sarasin, chairman of the Thai Chamber of Commerce, said the government should promote processing and value addition to agricultural products in order to tackle low farm prices.
He said research has concluded that rubber could be used as raw material for road safety barriers, kilometre markers and packaging.
“The TCC forecasts GDP growth of at least 4.5% this year, driven by strong tourism, growing exports and recovering private investment,” Mr Kalin said. “But in the second half risk factors include the trade war and Turkey’s plummeting currency, which need close watching.”