Bangkok: The FTI revealed that the industrial confidence index for June 2015 hit 87.7, the lowest in 8 months, pressured by the problems of the Cambodian border checkpoint and US taxes. It is proposed that the government speed up the amendment of trade laws and accelerate the spending of the budget to stimulate the economy.

According to Thai News Agency, Mr. Nawa Chantanasurakon, Vice Chairman of the Federation of Thai Industries (FTI), along with ML. Pikthong Thongyai, Vice Chairman of the Federation of Thai Industries and Chairman of the Economic and Academic Affairs Division of the FTI, jointly revealed the results of the Industrial Confidence Index survey in June 2025 at 87.7, down from 88.1 in May 2025, which was a result of the closure of the Thai-Cambodian border checkpoint and the suspension of oil and LNG gas imports from Thailand, affecting border and cross-border trade.

The US raised the Sectoral Tariff on steel and aluminum products from 25% to 50%, affecting the competitiveness of Thai entrepreneurs. The conflict between Israel and Iran has caused energy prices to fluctuate, slowing down exports and the number of tourists. In addition, the influx of goods from abroad has put pressure on entrepreneurs. Production for export has begun to be replaced by imported goods. Agricultural prices have contracted severely, affecting farmers’ income and reducing purchasing power in the region. In addition, political conflicts and uncertainty have affected investor and private sector confidence. The baht has strengthened along with other currencies due to capital inflows into the region and the weakening of the US dollar index.

However, there are still positive factors from the acceleration of exports before the end of the reciprocal tariff measure in July 2025. At the same time, the signal of trade negotiations between Thailand and the United States is still positive. And the promotion activities of entrepreneurs in the middle of the year help stimulate domestic consumption.

From a survey of 1,342 entrepreneurs covering 47 industrial groups by the Federation of Thai Industries (FTI) in June 2025, it was found that factors that entrepreneurs were increasingly concerned about included access to credit at 51.7%, exchange rates (from an exporter’s perspective) at 39.9%, energy prices at 31.3%, and lending interest rates at 24.7%. Factors that entrepreneurs were less concerned about included the domestic economy at 61.0%, the global economy at 57.7%, and government policy at 47.5%.

While the index forecast for the next 3 months also decreased, at 90.8, down from 91.7 in May 2025, due to uncertainty from problems on the Thai-Cambodian border, including the continuous closure of the border checkpoint for a long time, which may affect the value of Thailand’s border trade and cross-border trade. The Wage Committee has resolved to increase the minimum wage by 400 baht in Bangkok and some businesses in the provinces, effective July 1, 2025, affecting the employment costs of SMEs, including the uncertainty of the reciprocal tariff measures, affecting the trade situation.

However, there are still supporting factors expected to come from the approval of the 115 billion baht economic stimulus budget, which is expected to help the economy expand by 0.4%, and the 2025 Half-Half Thailand Travel Project, which is expected to help distribute income to local areas and stimulate the community economy comprehensively.

In this regard, the FTI has three recommendations to the government sector:

Ask the government to issue measures to help entrepreneurs affected by the closure of the Thai-Cambodian border trade checkpoint, such as helping to purchase products and distribute them to other markets, providing low-interest loans, temporarily suspending debt payments for SMEs, compensating workers for wages in the event of temporary business closures, subsidizing the price difference of raw materials if they have to be imported from other sources, and supporting shipping by ship or air, etc.

Ask the government to expedite the spending of the 115 billion baht economic stimulus budget to be carried out within the specified timeframe and to give importance to the supervision, monitoring and inspection of the project strictly and transparently.

Ask the government to accelerate negotiations to reduce the US import tariff (Reciprocal Tariff) to a competitive level before it takes effect on August 1, 2025.