FTI pushes MiT procurement as Thai industry faces risks
FTI proposes expanding Made in Thailand policy while accelerating AI-led Intelligent Industry measures to strengthen Thai manufacturing
Thai industry is entering the second half of the year under pressure from several directions, with weaker global demand, fragile domestic purchasing power, high energy costs and cheap imported goods threatening to weigh more heavily on manufacturers and SMEs.
Pimjai Leeissaranukul, chairwoman of the Federation of Thai Industries, said at Nation TV’s 26th anniversary event on June 4 that Thailand’s economy remained exposed to both domestic and external challenges.
These include a slowing world economy, weak local demand and high household debt, all of which are making the recovery of businesses and manufacturers fragile.
However, she said government stimulus measures, including the Thais Help Thais Plus programme and additional money for state welfare card holders under the 200-billion-baht borrowing decree, could help ease living costs and inject more purchasing power into the economy.
That would support businesses and entrepreneurs across a wide range of sectors, especially if domestic demand can recover more strongly in the second half of the year.
New growth horizon for Thai industry
Pimjai said Thailand needed to look for a “new horizon” for economic growth by developing future industries with higher value-added potential.
These include electronics, semiconductors, modern vehicles and data centres, which are becoming important digital infrastructure for artificial intelligence development.
Although data centres raise concerns over electricity and water consumption, she said Thailand could use them to build a stronger AI and digital economy ecosystem in the long term if resources are managed properly.
Thai industry is also facing pressure from global trade uncertainty, particularly stricter US tariff measures. Thailand is among the countries under scrutiny, but the private sector is ready to provide information to verify the true origin and production process of Thai goods, she said.
Pimjai said the issue did not affect Thailand alone, but was a shared challenge for many countries seeking ways to respond to changing global trade rules.
The prolonged conflict in the Middle East is another key risk because of its impact on global oil prices. Higher energy costs would affect every part of the economy, particularly the manufacturing sector, where rising costs could spread through the supply chain.
MiT seen as lifeline for SMEs
Pimjai said the Made in Thailand, or MiT, policy was one of the most important tools to support Thai businesses and SMEs at a time of intense competition and incomplete recovery in purchasing power.
The MiT scheme has been operating for six years and certifies products that contain at least 40% local raw materials or domestic production.
It currently generates more than 100 billion baht a year in government procurement, helping circulate at least 40 billion baht through supply chains, especially among SMEs.
The FTI is proposing that the government raise procurement of MiT-certified products to 200 billion baht to stimulate the domestic economy and help medium-sized and small operators stay afloat.
Businesses with MiT certification also receive about a 5% price advantage when bidding for government contracts, giving Thai-made goods a stronger chance to compete.
Second-half risks build for 48 industry groups
Pimjai said the first half of the year had not yet shown the full impact on the FTI’s 48 industry groups because many sectors still had remaining stock.
However, the second half is expected to become more worrying as manufacturers face supply-chain risks, high energy costs and an influx of cheap imported products that could take market share from Thai goods.
The FTI is also pushing the Thai manufacturing sector towards an “Intelligent Industry” model by encouraging wider use of AI, automation and digital technology.
The goal is to improve efficiency and strengthen Thailand’s industrial competitiveness.
However, Pimjai said technology investment would be effective only if businesses had enough sales and if purchasing power in the economy was strong enough to support them.
She said demand stimulus, credit support and new market opportunities for entrepreneurs must therefore move forward alongside the industrial technology transition.
