Thailand's Digital Economy Promotion Agency (depa) revealed that the Digital Industry Sentiment Index for Q1/2025 has returned to a positive zone, marking a recovery from the previous quarter. The improvement is credited to ongoing government economic stimulus measures, a lower policy interest rate, and growing momentum in the global AI race. Meanwhile, concerns remain as the minimum wage hike, foreign trade protectionism, and the inability of some businesses to keep pace with emerging technologies continue to weigh on industry sentiment. Entrepreneurs in Thailand's digital sector are calling on the government to accelerate the development of digital talent to meet industry demands.
depa revealed the results of the Digital Industry Sentiment Index Survey for Q1/2025 and Q4/2024, covering five key sub-sectors: Hardware and Smart Devices, Software, Digital Services, Digital Content and Telecommunications. For Q1/2025, the index stands at 50.1?an improvement from 48.8 in Q4/2024. The rebound is driven by better business performance, increased production volume, rising employment and higher investment. However, there is a slight dip in order volume and operating costs, reflecting ongoing pressures in some areas.
Asst. Prof. Dr. Nuttapon Nimmanphatcharin, President/CEO of depa stated that economic stimulus measures?such as the 10,000-baht digital wallet scheme and Easy E-Receipt 2.0?along with the lowered policy interest rate, foreign companies relocating production bases, and the intensifying global AI race, have all contributed to the Digital Industry Sentiment Index returning to a 'confident' level in the first quarter of 2025. This marks a recovery from the previous quarter, when the index dropped into negative territory for the first time in seven months. However, digital industry entrepreneurs still express concerns over the government's announcement of a minimum wage hike, rising international trade barriers and the challenge of keeping pace with rapidly emerging technologies?all of which continue to affect overall confidence in the sector.
In the first quarter of 2025, three industry groups reported a Sentiment Index above the neutral level of 50. The Software industry recorded an index of 51.5, followed by the Digital Services sector at 53.5 and the Telecommunications sector at 52.0?reflecting continued confidence in these areas. On the other hand, the Hardware and Smart Devices sector, along with the Digital Content sector, remained below the confidence threshold, with index scores of 45.8 and 46.4 respectively.
Looking back at the fourth quarter of 2024, the same three sectors?Software, Digital Services, and Telecommunications?also showed positive sentiment, with index levels of 50.3, 53.3, and 50.2 respectively. In contrast, the Hardware and Smart Devices sector recorded an index of 44.2, while the Digital Content sector stood at 43.7, both indicating a lack of confidence during that period.
"Entrepreneurs in Thailand's digital industry expect the government to accelerate the development of domestic digital talent to meet the needs of the sector. They also call for stronger support in promoting the adoption of digital technologies, creating opportunities to build on emerging innovations, encouraging investment to boost industry capabilities, providing access to low-interest funding, and reducing barriers to doing business" said the depa's President/CEO.
Dr. Warin Ratchananusorn, Director of the Digital Startup Institute under depa, also shared his vision on the future direction for supporting digital startups?a key area that could help boost confidence in the digital industry. He noted that Thai digital startups continue to face significant challenges, including limited access to funding, a shortage of in-depth mentorship, restricted international networks, and inflexible government mechanisms. Moreover, many traditional businesses are still unable to fully adopt digital technologies, resulting in fewer opportunities for startups to grow and conduct real-world testing within the country?making reliance on foreign technologies almost inevitable.
Dr. Warin emphasized that Thailand's opportunity lies in developing new models such as Venture Building programs that connect aspiring entrepreneurs with skilled technologists. Strengthening a collaborative rather than competitive startup ecosystem is essential. With the country's strong potential in human resources, technological readiness, and growing cross-sector collaboration, Thailand has the capacity to build a robust digital startup ecosystem. If all sectors work in a coordinated and systematic way, digital startups will not only help drive economic growth but also enhance national technological resilience?contributing to a more confident outlook within the broader digital industry.
All details and results of the Q1/2025 and Q4/2024 Digital Industry Sentiment Index are available on www.depa.or.th/th/depakm/digital-indicators, LINE OA: depaThailand and depa Thailand Facebook page.