Nath Vongphanich, president of the Thai Retailers Association (TRA), said the group sees public investment as a key driver for economic expansion in 2025, reports the Bangkok Post.
The government should expedite budget disbursement and public spending for 2025 to align with its targets, he said.
Efforts should be made to ensure a broad distribution of government funds through investments, procurement and stimulus measures to drive Thailand’s economy forward, said Mr Nath.
To support small and medium-sized enterprises (SMEs) and counter the influx of cheap Chinese goods, the government should facilitate access to low-interest loans or funding sources, expand trade opportunities, and increase marketing channels for Thai product distribution, he said.
“Next year, TRA will implement the ‘TRA GREAT’ initiative by providing spaces within member retailers such as Makro, Lotus’s, Central, Go Wholesale and Thai Watsadu for micro-SMEs to sell their products throughout the year,” said Mr Nath.
Moreover, TRA wants government measures to stimulate consumer spending, such as the ‘Shop Dee Mee Khuen’ programme, Easy e-Receipt and incentives for private sector investments.
The association also proposes the government offer tax incentives for tourists.
“We could adopt a tax-free shopping scheme for tourists similar to Japan, which allows tax-free purchases exceeding ¥500,000 per day. In Thailand, we may begin with value-added tax [VAT] exemptions for purchases exceeding B5,000 per day in a single store,” he said.
WHITE PAPER
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said the chamber submitted a white paper outlining urgent economic stimulus measures to the government.
“The government should implement policies aimed at lowering the cost of living for people and expenses for businesses,” he said.
Key recommendations include controlling the prices of essential goods and services, freezing electricity and diesel prices, and establishing an energy board.
In addition, the private sector recommends adjusting the minimum wage through the tripartite wage committee.
The chamber said the second phase of the B10,000 handout next year may be insufficient to stimulate the economy.
The group proposed a ‘multiplier measure’ that could double the circulation of funds in the economy. Initiatives such as the Easy e-Receipt programme could inject an estimated B30-50 billion into the economy via roughly 1 million participants, without burdening the state budget, according to the chamber.
Addressing the debt overhang among individuals and SMEs is also critical. The government should adopt integrated monetary and fiscal policies alongside income redistribution to reduce inequality, said the group.
Proposed measures include debt moratoriums and extensions for housing, vehicles and SMEs, especially to ensure work-related vehicles like pickups are not repossessed. There is also an urgent need to reduce interest rates and improve access to credit, said Mr Sanan.
He emphasised the importance of enhancing the competitiveness of Thai businesses to better compete with imported goods. Essential strategies include ensuring fair trade practices, preventing market-damaging practices such as dumping, and maintaining product quality standards.
The chamber called on the government to attract both domestic and foreign investments. One suggestion is to designate Prachin Buri as part of the Eastern Economic Corridor, which could significantly boost investment in that area.
This initiative would bolster the competitiveness of key sectors such as food, tourism and wellness, said Mr Sanan, while also increasing the potential to become a hub for logistics and connectivity as well as education.
As Thailand enters its peak tourism season, the chamber sees a prime opportunity to leverage major festivals such as New Year’s Eve, Chinese New Year and Songkran.
“If the government can promote Thailand’s soft power by organising various events and ensuring that Thai festivals are included in the global calendar, it will enhance awareness among foreign tourists and attract high-potential visitors to travel to and reside in Thailand. This would generate substantial income for the economy,” he said.
CONSUMPTION BOOST
Rakpong Chaisuparakul, senior vice-president at KGI Securities (Thailand), said the government is expected to announce a consumption package as a New Year’s gift on Dec 12.
“In our view, the New Year package may include a B38bn cash handout for farmers, a B40bn cash handout for the elderly, and an Easy e-Receipt programme effective for the first quarter of next year,” he said.
In addition, the market is keen to hear details of the Bank of Thailand’s plans to ease nationwide household debt, which is due to be announced on Dec 11, said Mr Rakpong.
According to KGI, the measures are expected to cover 2.3mn loan accounts with a combined value of B1.3bn, mainly in housing and consumer loans.
The assistance package will set a payment timeline of three years to allow debtors to waive interest rates and pay monthly instalments of 50% in the first year, 70% in the second year, and 90% in the third, noted the brokerage.
The government expects the measures to require a budget of B80bn, of which B40bn is funded by reducing the Financial Institutions Development Fund (FIDF) fee for banks to 0.23% of deposits, with the balance coming from money injected by banks.
Under these measures, banks can reduce their FIDF costs, but may need to contribute more money to raise the B80bn needed for the assistance measures.
“We remain positive on Thai consumer plays, which entered their high earnings season in the fourth quarter, as well as the non-bank finance sector, which could benefit from the household debt bailout plan,” said Mr Rakpong.