Bangkok: The Federation of Thai Industries (FTI) is voicing support for the "Half-Price Plus" scheme and initiatives to tackle household debt, expressing confidence that government formation will proceed without disruption. The Industrial Sentiment Index for January showed a rise to 88.7 from 88.2 in December 2025, driven by factors such as increased production for the Chinese New Year, tourism, and the upcoming election.
According to Thai News Agency, Mr. Nava Chantanasurakorn, Vice President of the FTI, alongside Dr. Wirat Chatdarong, FTI Board Member and Vice President for Economic and Academic Affairs, emphasized the private sector's backing for the new government to continue the "Half-Price Plus" co-payment scheme. They noted its positive impact on the Thai economy, with the scheme helping boost Q4 GDP to 2.5%, surpassing the initial 1.8% forecast. However, they stressed the importance of addressing household debt to ensure long-term economic sustainability, considering Thailand's export-focused market and uncertain US tariff situations.
The private sector has pledged to support government policies to achieve a 3% economic growth target for 2026, as set by Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapha. They urged the government to heed private sector input and eliminate corruption, while maintaining optimism that government formation will occur smoothly by mid-June.
The January 2026 Industrial Sentiment Index increase to 88.7 reflects positive industrial production resumption and tourism boosts. Investment in seven new data center projects in the EEC, totaling over 96 billion baht, is anticipated to sustain high-tech industry growth and demand. Additionally, improved security along the Thai-Cambodian border is facilitating economic recovery in the region.
Challenges persist, with government investment disbursement falling short of targets and labor cost increases due to higher social security contributions. Delays in unemployment benefit payments have also affected over 208,404 individuals' incomes. High PM2.5 levels continue to impact tourism and health, while the end of stimulus measures and baht appreciation pressure exporters' competitiveness.
The Industrial Sentiment Index forecast for the next three months rose to 95.9, driven by the upcoming Songkran festival and anticipated economic policy implementation with new government formation. Nonetheless, geopolitical conflicts and trade tensions remain key risks to global trade and supply chains.
The FTI has proposed that the government consider extending BOI's Competitiveness Enhancement Fund support program until the end of 2026 to help reduce costs and bolster entrepreneurs' competitiveness, alongside strengthening PM2.5 management laws.