Byte-sized bounce: Thai digital sector plugs back into confidence
Thailand’s digital sector has shown signs of life, climbing out of the red and back into confidence territory this year, thanks to artificial intelligence (AI) hype, economic boosters, and a softer policy rate. But insiders warn the rebound could short-circuit if skills shortages and wage hikes aren’t tackled fast.
The Digital Economy Promotion Agency (DEPA) revealed that its Digital Industry Sentiment Index climbed to 50.1 in the first quarter, up from 48.8 in the final quarter of 2024. Any score over 50 signals growing confidence in the sector, said Nuttapon Nimmanphatcharin, DEPA President and CEO,
“The improvement reflects stronger business performance, more production, higher employment and greater investment. It shows that the digital sector is responding well to current economic conditions.”
The Q1 boost was helped along by initiatives like the 10,000-baht digital wallet scheme, the Easy E-Receipt 2.0, and a cut in the policy interest rate. The global AI arms race has also played a key role, bringing a surge of interest, and investment, into Thailand’s tech landscape.
Foreign firms relocating production bases to the region added more fuel to the fire.
But it’s not all smooth coding. Businesses say they’re still battling concerns over rising minimum wages, global trade tensions, and the rapid pace of technological change, which some companies are struggling to keep up with.
“The government urgently needs to invest in digital talent,” Nuttapon stressed, warning that without it, momentum could falter. “Entrepreneurs are calling for more support to adopt new tech, encourage innovation, and ease access to funding.”
DEPA’s quarterly survey covered five digital sub-sectors: hardware and smart devices, software, digital services, digital content, and telecoms.
The top-performing industries in Q1 were:
-
Digital services (53.5)
-
Telecom (52.0)
-
Software (51.5)
These sectors maintained their position above the neutral line for a second straight quarter, showing solid confidence.
But the hardware and smart devices and digital content sectors remain in the doldrums, scoring 45.8 and 46.4, respectively, still below the confidence threshold, despite slight gains from late last year, Bangkok Post reported.
The message from the sector is clear: while the rebound is real, staying ahead means skilling up fast, keeping trade flowing, and helping businesses innovate before the next wave of disruption hits.
Latest Thailand News
