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Month After Predicting Double-Digit Growth, Thai Digital Industry Group Asks for Gov’t Handout

Thailand Digital Industry Business Technology Sector

Businesses in Thailand’s digital sector are asking the government to provide support in terms of employment, investments and regulations, as the Covid-19 pandemic has led to confidence loss among entrepreneurs, according to a survey.

A survey conducted by the Digital Economy Promotion Agency shows an overall decline in the confidence index from 45.6 points in the second quarter to 45.0 in the third quarter.

This survey assesses the confidence among entrepreneurs associated with digital services, digital content, telecommunications, software, hardware, and smart devices.

The request for government aid comes just a month after the same agency, DEPA, Thailand’s digital industry is expected to see double-digit growth this year, buoyed by a strong digital service sector. The digital industry is projected to reach 727 billion baht in value this year, up from 650.5 billion baht in 2020.

DEPA President and CEO Nuttapon Nimmanphatcharin now says the lower confidence index reflects the impact of the Covid-19 pandemic, and the lack of concrete and targeted stimulus measures from the government, resulting in the lack of purchasing power among consumers and lower liquidity among businesses.

He said the digital sector is asking the government to further support and promote the industry in terms of employment and wages, as the highly competitive landscape has driven up the base salary within the sector.

They are also asking for support measures in terms of investments, amendments to relevant laws and regulations, and better access to the government databases.