Prime Minister Paetongtarn Shinawatra on Wednesday (Oct 16) led the launch of the ‘Economic Recovery Project’, with key officials including Deputy Prime Minister Phumtham Vejjayachai, Commerce Minister Pichai Naripthaphan, Labour Minister Phiphat Ratchakitprakarn along with other government and private sector leaders in attendance.
The Prime Minister introduced the initiative, which brings together over 130 government agencies and major private companies to support small businesses by reducing their expenses and lowering consumer goods prices for the public.
The program will run continuously for five months. The government is focused on easing financial pressures on the population through a range of economic stimulus measures, including the ‘10,000 Baht Economic Recovery’ project, which has already injected over B145bn into the economy, boosting purchasing power and helping many people regain their financial footing, said a report by state news platform NBT.
FOCUS ON SMALL ENTREPRENEURS
The economic recovery project, running from September to January, will prioritise support for small entrepreneurs, who make up 95% of all businesses and form the backbone of Thailand’s economy.
Part 1: Reducing Costs for Small Entrepreneurs
- Lowering rental costs: The government is reducing rental fees for shops and stalls in both government and private areas. In Bangkok, with the help of Governor Chadchart Sittipunt, rent has been reduced by 50% in 12 major markets managed by the city, benefiting about 11,000 vendors until the end of the year. Additionally, the Ministry of Commerce and other government agencies have waived rent for more than 3,000 small entrepreneurs, as rent is a significant expense for businesses.
- Cutting shipping costs: Through cooperation with Thailand Post and government agencies, entrepreneurs who are part of the National Farmers Council, Thai Chamber of Commerce, or Office of Small and Medium Enterprises Promotion will see a reduction in shipping fees, further easing business costs.
Part 2: Expanding Business Opportunities for Small Entrepreneurs
- More business spaces: Government agencies and private companies are providing additional spaces for small entrepreneurs to operate. For instance, the Ministry of Defense has converted military camp areas into markets, while the Ministry of Interior is using space in front of provincial city halls. Over 1,300 new market spaces have been established across Thailand to give small businesses more opportunities to sell their products.
Part 3: Reducing the Cost of Living for the Public
- Price reductions on consumer goods: The government has partnered with major manufacturers, wholesalers, and 130 private companies to lower prices on consumer goods and organise a nationwide product discount festival. These discounts are available at major retailers, gas stations and online platforms. Special promotions are also being offered at over 140,000 Blue Flag, community, and local stores. Retail and wholesale stores in every province are participating in the discount festival, offering significant price cuts.
ECONOMIC IMPACT
The project is expected to stimulate the economy by over 110 billion baht. The government, with strong support from the private sector, is driving efforts to revive the economy through both short- and long-term plans. Prime Minister Paethongtarn Shinawatra emphasized the importance of collaboration between sectors to ensure the success of this initiative and urged citizens to stay informed about upcoming economic stimulus policies.
MINISTER OF COMMERCE’S UPDATE ON ECONOMIC RECOVERY
Commerce Minister Pichai Naripthaphan noted that the Thai economy is showing signs of recovery, with significant investment flowing into the country. Last year, investments in electronic circuit boards reached B150bn, and this year, a data centre valued at B160bn has been established, alongside investments from Google and the United Arab Emirates totaling an additional B60bn. The Minister also highlighted progress in food security efforts following the Prime Minister’s recent visits to Qatar and Laos.
The Ministry of Finance expects the B110bn economic stimulus goal to come from three key areas.
Since September, the Ministry of Commerce (MOC) has been piloting activities under the economic recovery project, including nationwide commercial markets, the Vegetarian Festival, and the International Live Commerce Expo 2024. The B110bn target is expected to come from the following three main sources:
- Stimulating spending among vulnerable groups: About B78.7bn is expected to come from spending by low-income groups who received B10,000 each. This money is projected to be spent on promotional items related to the economic recovery project. According to data from the National Statistical Office, low-income households typically spend about 54.1% of their income on food, beverages, household goods and clothing.
- Reducing business costs and creating opportunities for small entrepreneurs: Around B18.7bn is expected to come from activities organised by the Ministry of Commerce to lower costs for small businesses and boost money circulation in the economy. These activities include events such as the International Live Commerce Expo 2024, the Vegetarian Festival, the Loi Krathong Festival, the New Year Festival, the Blue Flag Festival and other commercial markets across the country.
- Discount festival to stimulate domestic spending: An estimated B14.4bn will come from a nationwide discount festival, where department stores, retail and wholesale outlets, and major manufacturers will reduce prices. This will help lower the cost of living and encourage consumer spending.
These activities are expected to inject money into the economy, benefiting all sectors and helping revive the Thai economy, the report said.
REGIONAL ACTIVITIES
The economic recovery project is being implemented across all five regions of Thailand through Zoom, with events held in Khon Kaen, Lopburi, Udon Thani, Phuket and Chiang Rai, said the report.
Representatives from these regions expressed their appreciation to the government for supporting local areas and creating new opportunities for small entrepreneurs.
Entrepreneurs are hopeful that the project will energise their regional economies, while attendees thanked the government for helping reduce the cost of living, the report concluded.