The economic slowdown across the industrial, agricultural and trade sectors, coupled with a persistently high level of household debt, have hampered low-income earners and entrepreneurs, particularly small and medium-sized enterprises (SMEs).
In the short term, the government remains focused on increasing income and easing the cost of living for vulnerable groups, offering subsidies for low-income earners, people with disabilities and the elderly.
The government also implemented several policies such as a debt moratorium and interest rate reduction for farmers, a visa-free scheme to attract foreign tourists, and a 10,000-baht cash handout to 14.6 million people classified as vulnerable, injecting more than 145 billion baht into the economy.
Authorities insist an economic recovery is crucial, with the government prioritising stimulus measures such as cash handouts in the first few months of its administration.
More stimulus and programmes aimed at supporting the public are in the pipeline, including one for SMEs, which comprise 90% of Thai businesses and form the backbone of the economy.
The Commerce Ministry joined hands with government agencies to launch a nationwide economic recovery programme over a five-month period to assist small businesses, said Wittayakorn Maneenetr, director-general of the Internal Trade Department.
The programme commenced in September and continues until January 2025.
Q: What is the objective of the economic recovery programme?
The programme aims to reduce expenses, decrease the cost of living, stimulate consumer spending, increase income, and expand opportunities for SMEs.
The implementation of the programme is a collaborative effort between the public and private sectors, with the Commerce Ministry serving as the central coordinating body.
Q: What are the key elements of the programme?
The programme consists of three main components. The first aims to reduce costs for SMEs through initiatives such as rent reductions for shops and stalls in the government and private sectors, as well as cuts to shipping fees.
For example, rents have been reduced at 12 major markets in Bangkok by up to 50%, benefiting around 11,000 vendors.
In addition, the Commerce Ministry and other government agencies have waived rental fees for more than 3,000 businesses.
Thailand Post plans to work with government agencies to offer discounted shipping rates to businesses affiliated with the National Farmers Council, the Thai Chamber of Commerce and the Office of Small and Medium Enterprises Promotion.
The second prong concerns improving sales opportunities for SMEs by giving them access to government and private sector spaces.
For example, the Defence Ministry is expected to allow military camps to be used to host markets, while the Interior Ministry provides vendors space in front of provincial halls countrywide.
In addition, more than 1,300 markets have been organised across the country.
In collaboration with the public and private sectors, provincial commercial offices prepared designated sales points nationwide to help SMEs sell consumer products free of costs.
Potential sales points that are easily accessible to the public include city halls, tourist destinations, Tong Chom (must-see) markets and Thong Fah (Blue Flag) mobile units.
The third component involves reducing the cost of living for the public, utilising partnerships with major manufacturers and wholesalers to ease the prices of essential consumer goods through discount campaigns and seasonal promotions.
A series of sales events are scheduled that include companies, major manufacturers, department stores, petrol stations and online sales platforms.
In total, 130 organisations that operate more than 100,000 stores are expected to participate in the initiative.
Q: What is the expected outcome?
The government predicts stimulus of the economy by up to 110 billion baht based on the three recovery initiatives.
Of the total, around 78.7 billion baht is expected from higher spending among members of the vulnerable groups who each received a 10,000-baht handout.
Some 18.7 billion baht should be generated through the reduction in business costs and the creation of opportunities for SME entrepreneurs, as well as the organisation of economic circulation activities, according to authorities.
Finally, the government anticipates 14.4 billion baht will be generated by large retailers and manufacturers holding sales events that help stimulate domestic spending and reduce the cost of living.
By the end of the project, authorities hope the stimulus can help every sector of the population by revitalising the Thai economy.
