MPI poised to expand by 4-5% on global recovery
Industry Minister Suriya Jungrungreangkit expects bright prospects in the industrial sector this year, believing Thailand's manufacturing production index (MPI) will expand by 4-5%, driven by global economic recovery.
Exports and stimulus measures will continue to benefit manufacturers, said Mr Suriya, adding that GDP in the industrial sector is expected to grow by 2.5-3.5%.
Food processing, cars and auto parts, electronics, logistics and medical equipment are among businesses to benefit from the global economic recovery.
Domestically, the reopening of the country will be a positive factor for businesses.
Thongchai Chawalitpichaet, chief of the Office of Industrial Economics (OIE), said the MPI in December last year increased by 6.83% year-on-year to 102.59 points.
The increase resulted from the easing of lockdown measures, which enabled businesses to resume normal operations, as well as stimulus packages.
"For the whole year of 2021, Thailand's MPI increased by 5.93% with the capacity utilisation rate recorded at 63.73%," said Mr Thongchai.
The industries that contributed to the rise in MPI included petrochemical manufacturing, cars, electronics and circuit boards, textiles and garment, food as well as tyres and rubber.
They enjoyed good performance despite the pandemic.
In December, the automotive industry expanded by 9.15% because demand for cars in the global market grew, which boosted car exports from Thailand.
The petroleum industry expanded by 7.54%, thanks to growing demand for diesel and gasoline. The reopening of the country also boosted demand for fuel.
Sugar producers were also satisfied with their businesses. Sugar manufacturing expanded by 31.52% because the weather was suitable for sugar cane plantations, resulting in higher crop yields.
Electronics and circuit board manufacturing increased by 14.24% due to growing demand for products, especially home appliances and electric vehicles, from abroad.