BANGKOK, June 8 (Xinhua) -- Thailand's industrial sector is navigating a widening divide between fast-growing technology-linked industries and traditional manufacturers facing mounting cost pressures, the Federation of Thai Industries (FTI) warned on Monday.

Workers work at the Great Wall Motors (GWM) manufacturing plant in Rayong, Thailand, Jan. 12, 2024. (File photo: Xinhua)

FTI Chairwoman Pimjai Leeissaranukul said the second quarter of 2026 is expected to see a mixed outlook with legacy industries squeezed by high energy costs, raw material shortages, and intense foreign competition, even as emerging industries gain momentum.

In a statement, Pimjai identified electrical and electronics, air conditioning, food and beverages, and rubber products as industries benefiting from sustained global demand, while domestic consumption is supporting cosmetics, pharmaceuticals, medical devices, and palm oil producers.

She noted that government-backed sectors, including electric vehicles, industrial machinery and automation, biotechnology, renewable energy, and digital infrastructure, particularly data centers, were singled out as long-term growth engines.

The FTI cited rising state-promoted investment projects, robust export growth, a government emergency borrowing decree, and economic relief measures, along with stable sovereign credit, as tailwinds.

However, it pointed out that the protracted Middle East conflict and its disruption on energy and logistics, labor shortages across the industrial and agricultural sectors, and a looming Super El Nino weather pattern are risk factors that could hamper production capacity.

Pimjai said Thailand's industrial sector still has growth opportunities in many segments, particularly those linked to global markets, technology, and the green economy.

At the same time, operators must adapt to risks around costs, supply chains, and competition to sustain long-term competitiveness, she added.