The government has launched a nationwide economic recovery initiative, enlisting major corporations to support small operators with the goal of boosting the economy by up to 110 billion baht.
Running from September this year to January, the campaign has three parts which are reducing expenses, generating income and creating opportunities with a focus on small operators, who make up for 90% of the country's business operations and serve as the backbone of the economy.
Speaking at the launch on Wednesday, Prime Minister Paetongtarn Shinawatra affirmed the government's commitment to stimulating economic activity with last month's 10,000-baht cash handout marking a key step in boosting consumer spending and creating business opportunities.
"The government expects the initiative to stimulate the economy by as much as 110 billion baht," Ms Paetongtarn said, noting the public sector is the driving force behind the policy while the private sector supports the implementation.
As far as cutting costs is concerned, the government has sought cooperation from state agencies and firms in lowering rental fees for operators who rent spaces owned by state agencies and participating companies. In Bangkok, 12 market operators who work with the Bangkok Metropolitan Administration have agreed to half rental fees for about 11,000 vendors until the end of this year.
The Commerce Ministry and other state agencies have also agreed to waive rental fees for over 3,000 vendors while Thailand Post and participating partners will also reduce transport costs.
Ms Paetongtarn said rental fees and transport are important costs in the doing of business. The government is seeking to increase marketplaces for small operators and the Defence Ministry and the Interior Ministry will turn certain areas at military bases and provincial halls into markets, she said. More than 1,300 marketplaces will be created nationwide.
The government also is joining hands with major manufacturers and wholesalers to lower the price of consumer goods and organise discount events. More than 130 operators with over 100,000 branches will take part in this scheme, she said. The prime minister said the government will further introduce both short-term and long-term plans to bolster the economy.
The kick-off was joined by Deputy Prime Minister Phumtham Wechayachai, Commerce Minister Pichai Naripthaphan, Deputy Commerce Minister Suchart Chomklin and representatives from the private sector including CP Group, The Mall Group, BJC, Big C, PT, PTT Oil and Retail Business Plc, Sea Value, Thai Union and OSOTSPA.
Mr Pichai said the economic recovery campaign is the premier's approach to revive the economy after the country attracted investments from various industries. Last year, electronic circuit board investments amounting to 150 billion baht were made, while this year data centre investments of 160 billion baht have been made, excluding 30 billion baht from Google and another 30 billion baht from the UAE, he said.
Ms Paetongtarn's recent trips to Qatar and Laos also drew investment interest in several sectors including food security, he added. The projected 110-billion-baht figure is expected to come from three sources. Of the total, 78.7 billion baht will stem from increased spending among vulnerable groups who received a 10,000 baht cash handout. It is estimated this group will spend about 54% of the handout on discount items under the economic recovery project.
About 18.7 billion baht will come from cutting business costs and creating opportunities for small operators through festivals and special activities to stimulate spending. The remaining 14.4 billion baht will come from sales events at department stores and retail/wholesale outlets and price discounts from manufacturers. Meanwhile, KKP Research has revised its economic forecast for 2024, increasing the GDP projection from 2.6% to 2.8%, and for 2025, from 2.8% to 3.0%.
