Retailers are asking the government to review the eligibility conditions for the second phase of its 10,000-baht handout to ensure the target groups are helped, in particular vulnerable groups affected by the economic slowdown.
The first phase of the consumption stimulus programme, involving 14.1 million low-income and disabled people, came with few conditions.
As a result, it did did not stimulate the economy as much as expected because many recipients used the money to pay off debt instead of spending it, said Somchai Pornrattanacharoen, president of the Thai Wholesale and Retail Trade Association.
For the next phase of the handout, the government should clearly specify conditions for spending in order to create the desired multiplier effect in the economy, he said on Wednesday.
The government originally intended to give 10,000 baht each to as many as 45 million Thais aged 16 and over, but the programme has been dogged from the start by questions about the high cost and whether it would really stimulate the economy.
Officials have been vague about when the next phase will start, how many people will be covered, how much money they will receive and whether it will be cash or digital money. The expression “digital wallet” that the Pheu Thai Party used during last year’s election campaign is rarely heard these days.
If and when the second phase starts, it should focus on vulnerable groups, such as low-income earners and small businesses, using the “half-half” scheme or Blue Flag stores to address the cost of living crisis, Mr Somchai said.
The retailers’ association views the handout as ineffective for small businesses because of its complex conditions and slow fund transfers, he said at a public hearing on the development of wholesale and retail businesses nationwide.
Following the hearing, Deputy Commerce Minister Napintorn Srisunpang proposed a project to support local wholesale and retail businesses in the fiscal 2025 budget, especially traditional family-owned shops amid the strong influence and popularity of modern trade.
The project would involve the promotion of community products to be sold at wholesale and retail stores, as well as help with electronic management of stock.
The ministry wants to increase the market value of wholesale-retail business from 3.6 trillion baht to 5.5 trillion, while raising the GDP contribution from small and medium-sized enterprises from 35.2% to 40% by 2027.
