Prime Minister Paetongtarn Shinawatra has announced the launch of a nationwide economic recovery program to increase the economy by 110 billion baht (US$3.3 billion) by year-end.
The economic recovery effort campaign focuses on increasing income, decreasing expenses, and creating chances for small operators, who make up 90% of the country’s commercial operations and drive the economy.
Prime Minister Paetongtarn Shinawatra confirmed the government’s commitment to economic growth at the luncheon yesterday, citing last month’s 10,000-baht cash giveaway as a vital step in increasing consumer spending and business prospects.
She stated, “The government expects the initiative to stimulate the economy by as much as 110 billion baht,” with the public sector pushing the strategy and the private sector supporting it.
The government has asked state agencies and corporations to slash rental fees for operators who utilize state-owned and participating company venues to cut costs. Twelve market operators working with the Bangkok Metropolitan Administration will cut rental rates for 11,000 sellers until the end of the year.
Over 3,000 vendors will have their rental fees waived by the Commerce Ministry and other state agencies, and Thailand Post and collaborating partners will lower transit expenses.
She said the Defence and Interior Ministries will also turn vacant lands on military bases and provincial halls into markets for small enterprises. More than 1,300 marketplaces will open nationally.
The government is also working with key manufacturers and distributors to cut consumer goods prices and hold discount events. More than 130 operators with over 100,000 branches will participate, and the government will provide short- and long-term economic stimulus programs.
Bank of Thailand Rate Cut
On Wednesday, the Bank of Thailand unexpectedly lowered rates by 25 basis points to 2.25%. The central bank’s Monetary Policy Committee cut the one-day repurchase rate by 25 basis points to 2.25% 5–2. The rate was 2.50% since September 2023, a 10-year high.
Last September, the policy rate rose 25 basis points. The central bank last decreased rates in May 2020 due to the COVID pandemic.
The Pheu Thai government has been pushing the central bank to lower borrowing costs for months in order to boost the lagging Thai economy. The Finance Minister claims that inflation has been below the central bank’s 1-3% target for months.
Meanwhile, Thai Chamber of Commerce chairman Sanan Angubolkul said decreasing borrowing costs will also help businesses with high costs and a strong baht. Thai Baht to US Dollars exchange rates today were 1 THB = 0.03014 USD.
The local currency rose 14% in the third quarter, making exports more expensive than competitors. In recent days, it weakened. The rate drop should help the tourism industry invest and modernize services to compete and increase tourist spending.
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