The community is advocating for various government stimulus measures, particularly tax incentives and a scheme to reduce household debt, to rejuvenate the economy and provide the public with a New Year’s gift.
Nath Vongphanich, president of the Thai Retailers Association (TRA), emphasized the importance of public investment as a crucial factor for economic growth in 2025. He urged the government to accelerate budget allocations and public spending to meet its goals.
Mr. Nath suggested that government funds be broadly distributed through investments, procurement, and stimulus initiatives to propel Thailand’s economy. He called for support for small and medium-sized enterprises (SMEs) in facing competition from inexpensive Chinese products, recommending increased access to low-interest loans, expanded trade opportunities, and enhanced marketing channels for Thai products.
To further support SMEs, the TRA plans to launch the “TRA GREAT” initiative, providing retail spaces within members’ stores like Makro, Lotus’s, Central, Go Wholesale, and Thai Watsadu for micro-SMEs to showcase their products year-round.
Additionally, the TRA is advocating for government measures to boost consumer spending, including programmes like “Shop Dee Mee Khuen,” Easy e-Receipt, and incentives encouraging private sector investment. The association also proposes tax incentives targeted at tourists, suggesting a tax-free shopping scheme similar to that of Japan, potentially starting with VAT exemptions for purchases above 5,000 baht in a single store.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, shared that the chamber has submitted a white paper outlining critical economic stimulus measures to the government. He stressed the need for policies aimed at lowering the cost of living and business expenses, emphasizing price control for essential goods, freezing electricity and diesel prices, and the establishment of an energy board.
Furthermore, the private sector recommends adjustments to the minimum wage through a tripartite wage committee. The chamber expressed concerns that the second phase of the 10,000-baht handout planned for next year might not be enough to invigorate the economy. They proposed a “multiplier measure” that could significantly enhance the circulation of funds, estimating that initiatives like the Easy e-Receipt programme could infuse approximately 30-50 billion baht into the economy through around 1 million participants, without straining the state budget.
The chamber remarked on the urgency of addressing individual and SME debt, advocating for integrated monetary and fiscal policies and income redistribution to reduce inequality. Suggested measures include moratoriums on debts for housing, vehicles, and SMEs, as well as an essential push to lower interest rates and improve credit access.
Additionally, Mr. Sanan highlighted the necessity of boosting the competitiveness of Thai businesses against imported goods. Vital strategies include ensuring fair trade practices, preventing detrimental practices like dumping, and upholding product quality standards. The chamber is also encouraging the government to attract both domestic and foreign investment, proposing that Prachin Buri be designated part of the Eastern Economic Corridor to enhance investment in that area.
As Thailand prepares for its peak tourism season, the chamber sees an ideal moment to capitalize on significant festivals such as New Year’s Eve, Chinese New Year, and Songkran. Mr. Sanan urged the government to promote Thailand’s soft power by organizing events that elevate Thai festivals on the global stage, potentially drawing high-caliber tourists and generating substantial economic benefits.
Rakpong Chaisuparakul, senior vice-president at KGI Securities (Thailand), anticipates the government will announce a consumption package as a New Year’s gift on December 12, which may feature a cash handout of 38 billion baht for farmers, 40 billion baht for the elderly, and the Easy e-Receipt programme starting in the first quarter of the coming year. He noted that insights into the Bank of Thailand’s strategy for alleviating household debt would be revealed on December 11.
According to KGI, the proposed measures may target 2.3 million loan accounts totaling 1.3 trillion baht, primarily in housing and consumer loans. The plan would aim for a three-year repayment timeline, allowing debtors to waive interest and pay lower percentages of their monthly installments each year. The government anticipates that costs will amount to 80 billion baht, half of which would be covered by lowering banks’ Financial Institutions Development Fund (FIDF) fees.
On the automotive front, Surapong Paisitpatanapong of the Federation of Thai Industries (FTI) expressed caution regarding the state’s car trade-in initiative to stimulate the market, arguing that real success depends on people’s income and banks’ willingness to issue loans under strict credit conditions due to high household debt levels.
Mr. Surapong urged authorities to clarify details about the trade-in programme, such as eligible vehicle types and pricing. He pointed out a recent downgrade in Thailand’s 2024 car manufacturing target to 1.5 million vehicles from 1.7 million due to a 19.2% drop in production from January to October.
Chaiyaporn Nompitakcharoen from Bualuang Securities advocated for government support for solar
