Thai digital industry sentiment hits three-year high amid economic recovery

A recent survey by the Digital Economy Promotion Agency (Depa) revealed that the Digital Industry Sentiment Index has risen above the 50-point threshold for the first time in a year, reaching a three-year high. The index reached 54.0 during the first quarter, up from 49.0 in the final quarter of 2022, indicating increased confidence among entrepreneurs as Thailand‘s economy recovers due to a tourism resurgence and increased foreign investment.

Five sectors were included in the survey: hardware and smart devices, software, digital services, digital content, and telecommunications. The results showed that three of these sectors had index values above 50, with digital content at 59.3, telecommunications at 58.6, and hardware and smart devices at 57.1. However, software and digital services remained below the threshold, with indices of 49.8 and 48.9, respectively.

Depa’s president and chief executive, Nuttapon Nimmanphatcharin, attributed the economic rebound to the revival of tourism and foreign investment, which in turn boosted the private sector’s purchasing power. The growing demand for digital transformation across various industries also played a role in lifting the index.

Nuttapon noted that foreign investment in digital infrastructure and the expansion of global technology companies’ production capabilities in Thailand sent a positive signal. This development would potentially lower production costs for Thai digital entrepreneurs, enabling them to increase production capacity and profit.

The survey, which samples approximately 500 enterprises in the digital industry each quarter, also highlighted the increasing demand for digital professionals as businesses continue to transform. This demand has led to a labour shortage and higher personnel costs. Entrepreneurs are calling on the government to provide specific solutions, such as making financial resources more accessible and attracting digital talent from around the world to meet the rising workforce demands.

Nuttapon said…

“In the survey, Thai digital entrepreneurs had a strong preference for the government creating a conducive environment for digital industry development by facilitating access to financial resources, whether from local or foreign sources.

“They also want an opportunity to participate in large government projects, while the government should work to attract digital talent from around the globe to fulfil rising demand, as well as promote foreign trade in the industry.”

To address the demand for skilled digital workers, Depa, TBN Corporation, and Kasetsart University have partnered to develop a digital workforce. They plan to use a low-code development platform to train workers, providing a development environment for creating application software through a graphic user interface. While Depa has previously collaborated with various state agencies and private enterprises to offer digital workforce training programmes, producing 30,000 trainees annually, the current demand for skilled digital workers is estimated at 100,000 employees per year, reported Bangkok Post.