FTI chairman Supant Mongkolsuthree on Thursday suggested scrapping the "Test & Go" programme for people entering Thailand.
Also, necessary public health measures should be in place so that Covid-19 could be relegated to an endemic from a pandemic, which he said could restore confidence in foreign tourists as well as Thai citizens.
An FTI survey showed that the industrial confidence index stood at 89.2 in March, compared to 86.7 a month ago.
“This is the highest increase in 25 months, since March 2020,” Supant said.
He added that the higher confidence among industry operators resulted from the relaxed Covid control measures in Thailand and elsewhere, which led to economic recovery and increased demand.
The FTI chief said that the outlook is even brighter as the Covid-19 situation is improving substantially and vaccinations have covered most of the population.
“Domestic demand is going up and Thailand’s exports are expanding, in line with the global trend,” he added.