Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Japanese confidence rebounds for 2026; 23% to expand Thai investment – Full Analysis.
23% of Companies Ready for Additional Investment
Regarding investment in factories and machinery, 23% of Japanese joint ventures indicated they will increase investment in 2026.
Meanwhile, 43% reported that investment would remain stable, and 19% expect a decrease.
Within the group, planning more investment, over 22% are in the electrical and electronics industry, followed by the chemical industry at 18%.
Additionally, 12% of trading companies intend to increase their investment in 2026.
On the export front, over 35% of Japanese joint ventures believe they will be able to export more in the first half of 2026, specifically in electrical and electronics, transport machinery, and chemicals.
Conversely, 45% expect exports to remain stable, while 20% anticipate a contraction during the first half of the year.
Recommendations for the Thai Government to Boost the Economy
Japanese joint ventures in Thailand have submitted several proposals to the Thai government.
Approximately 42% of entrepreneurs suggest that the government implement measures to stimulate consumption.
Furthermore, 32% recommend that the government expedite solutions for household debt.
There are also calls to improve tax refund and audit processes, such as simplifying refund procedures and addressing inconsistencies in official practices.
Additionally, the government is urged to seriously enforce measures regarding air pollution.
Praise for Government Digitalisation
Regarding areas of improvement, over 20% of Japanese joint ventures noted that the Thai government has successfully increased the use of digital technology in public sector operations.
As for the impact of the 19% US customs tariff policy, 44% of surveyed companies believe they are not yet affected.
Approximately 26% reported being affected or expecting a negative impact, while 22% are still uncertain.
The survey found that regarding countermeasures for the 19% US tariff imposed on Thailand, 54% are maintaining their current status.
Meanwhile, 22% are consulting with business partners and considering passing on costs through product and service prices, and 13% plan to expand their domestic distribution channels.