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Thailand: Ministry expected to revise up MPI growth for 2021
The Industry Ministry expects to revise the manufacturing production index (MPI) growth for 2021 up from 4-5% next month, following positive sentiments from the planned reopening of Thailand and the revived global economy.
GDP in the industrial sector was also earlier predicted to grow by 3-4% this year.
“The government has sped up giving Covid-19 vaccines to people, leading to better control of the infection rate now falling below 10,000 new cases a day. This is good for the MPI,” said Industry Minister Suriya Jungrungreangkit.
As the outbreak eased off, Prime Minister Prayut Chan-o-cha announced early this month reopening the tourism industry on Nov 1 to welcome back fully vaccinated foreign tourists in a bid to boost the economy.
The MPI also benefits from lockdown easing and the government’s stimulus packages.
Though the MPI in September decreased by 1.28% year-on-year to 93.72 points, the index rose by 7.49% from August this year, said Thongchai Chawalitpichaet, chief of the Office of Industrial Economics (OIE).
From January to September, the MPI increased by 6.1% year-on-year to 97.01 points, although in the third quarter the index decreased by 6.52% year-on-year to 90.43 points.
The capacity utilisation rate was recorded at 61.98% in September.
Among the industries that contributed to the MPI growth is electronic part and circuit board manufacturing which rose by 13.12% year-on-year in September, according to the OIE.
The increase was attributed to growing demand in the global market, a work-from-home guideline and technology development.
Steel and iron production also increased by 13.61% year-on-year in the same month due to higher demand, especially from businesses which wanted to stock the materials as their prices were on the rise.
Air conditioners and components also played a major role in driving the September MPI as manufacturing increased by 20.24% year-on-year.
The increase followed an adjustment to offset a decrease in production caused by Covid-19 infections in factories in August.
In the rubber and tyre segment, manufacturing also increased by 11.32% year-on-year because of growing demand from the automotive industry amid the global economic recovery, especially in the US and China.
Cigarette production also increased by up to 71.29% year-on-year after the government announced imposing a new excise tax rate from Oct 1.
Source: https://www.bangkokpost.com/business/2205327/ministry-expected-to-revise-up-mpi-growth-for-2021