The Thai Industries Sentiment Index (TISI) hit its highest point in 36 months after three months of continuous growth, driven by state megaprojects, economic stimulus measures and increasing consumer confidence, says the Federation of Thai Industries (FTI).
The TISI in January rose to 91 points from 89.1 in December, said FTI chairman Chen Namchaisiri.
"The FTI index surveyed 45 industry sectors with 1,045 member businesses in Thailand," Mr Chen said. "The business sector has positive outlook about Thailand's economy in this year."
A few months ago, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) forecast 2018 GDP to grow 3.8-4.5% and exports to rise 3.5-6%, citing a resurgent domestic and global economy.
The FTI expects a boost in investor confidence from the government's infrastructure projects, the Eastern Economic Corridor and the global economic expansion.
Investor confidence was not shaken by the nine-month delay in the construction of two coal-fired power plants in southern Thailand, since the government has solved the problem, Mr Chen said.
The private sector is urging the government to promote the competitiveness of local labour to compensate for the higher daily minimum wage, he said.
Businesses furthermore want the government to negotiate its free trade agreement with the EU and encourage local businesses to expand into neighbouring countries such as the rapidly growing CLMV economies.
Also on the wish list is an expansion of the scope of corporate income tax deductions to include those who want to import machinery and upgrade production facilities in line with the Thailand 4.0 policy.
