The digital industry sentiment index rebounded to 50.1 in the first quarter this year from 48.8 in the fourth quarter of 2024, driven by stimulus measures, a lower policy interest rate and growing momentum in the global artificial intelligence (AI) race.
Meanwhile, industries remain concerned about the minimum wage hike, foreign trade protectionism and the inability of some businesses to keep pace with emerging technologies.
Entrepreneurs in Thailand's digital sector are calling on the government to accelerate the development of digital talent to meet industry demand.
Nuttapon Nimmanphatcharin, president and chief executive of the Digital Economy Promotion Agency, which conducts the index, said the survey for the first quarter of 2025 covered five key sub-sectors: hardware and smart devices, software, digital services, digital content and telecom.
He said the improvement was driven by better business performance, increased production volume, rising employment and higher investment.
However, there was a slight dip in order volume, reflecting ongoing pressures in some areas.
Respondents said stimulus measures, such as the 10,000-baht digital wallet scheme and Easy E-Receipt 2.0, along with a lower policy rate, foreign companies relocating production bases and the intensifying global AI race, have all contributed to the index rebounding to a "confident" level in the first quarter.
This marks a recovery from the previous quarter, when the index dropped into negative territory for the first time in seven months.
However, digital industry entrepreneurs still expressed concerns over the government's minimum wage hike, rising international trade barriers and the challenge of keeping pace with rapidly emerging technologies -- all of which continue to affect overall confidence in the sector.
Mr Nuttapon said three industry groups reported a sentiment index above the neutral level of 50.
The software industry recorded an index of 51.5, following the digital services sector at 53.5 and the telecom sector at 52.0 -- reflecting continued confidence in these areas.
The hardware and smart devices sector, along with the digital content sector, remained below the confidence threshold, with index scores of 45.8 and 46.4, respectively.
In the fourth quarter of 2024, the same three sectors -- software, digital services and telecom -- also showed positive sentiment, with index levels of 50.3, 53.3 and 50.2, respectively.
In contrast, the hardware and smart devices sector recorded an index of 44.2, while the digital content sector stood at 43.7, both indicating a lack of confidence during that period.
"Entrepreneurs in Thailand's digital industry expect the government to accelerate the development of domestic digital talent to meet the needs of the sector," he said.
Mr Nuttapon said entrepreneurs also called for stronger support in promoting the adoption of digital technologies, creating opportunities to build on emerging innovations, encouraging investment to boost industry capabilities, providing access to low-interest funding and reducing barriers to doing business.