Connect with us

Economy

Economic think tank says shopping stimulus will only help in the short-term

Published

 on 

PHOTO: Elite Havens Magazine

The research division of Kasikorn Bank says while the government’s planned shopping stimulus has its advantages, the benefits will only be short-term. The Kasikorn Research Centre points out that the scheme, which it’s hoped will run from October 23 to December 31, will only provide a temporary boost to the economy.

The stimulus measure, which is being put to the Cabinet on Monday, will offer shoppers a co-payment of 3,000 baht each, with a maximum daily payment of 150 baht. The payment is intended to subsidise consumer purchases, with the exception of lottery tickets, flight and accommodation bookings, alcohol and tobacco.

Nation Thailand reports that, according to the Kasikorn Research Centre, a take-up by 1.85 million consumers should generate around 55.5 billion baht for the economy. Should the number of consumers rise to 4 million, the figure would be more than twice that, at 120 billion baht.

The centre also says that without the scheme, total credit card payment for 2020 is expected to decrease by 12%. If the scheme is successful, that should improve to 11%. Retailers are expected to benefit the most, with the scheme also expected to boost the sale of items currently experiencing a fall in demand due to the current economic crisis.

However, the centre points out that the stimulus package is only a short-term solution, adding that most retailers who will benefit will be large corporations and not small businesses. It will also not be worth while for production lines to resume full scale operations, as any increase in demand for consumer products will only last for the 2 months the scheme is in operation.

SOURCE: Nation Thailand

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

8 Comments

8 Comments

  1. Toby Andrews

    Friday, October 9, 2020 at 11:41 am

    But only for Thais Right?
    The retailors will just put up the prices because the buyers are given discounts.

  2. Issan John

    Friday, October 9, 2020 at 12:54 pm

    “But only for Thais Right”?

    God Almighty, this is Thailand!

    Of course it’s “only for Thais”.

    The idea that “retailors will just put up the prices because the buyers are given discounts” is so patently stupid that even I can’t be bothered to comment further.

    • Noneya Bidnizz

      Tuesday, October 13, 2020 at 3:37 am

      Please DO NOT comment further .

      Your comments only show your ignorance , xenophobia and outright racism .

      Mung Bpen Kwaii !!!

  3. Glenn

    Friday, October 9, 2020 at 2:23 pm

    DUH

    • Toby Andrews

      Friday, October 9, 2020 at 5:40 pm

      It is just another case of dual pricing.
      The Thais pay less. They have discount – the foreigner pays more.
      Ever been to one of these Thai stores that allow 7 percent back at the airport for the departing foreigner?
      No, I doubt you have. If you did you would see the prices are inflated because the buyer receives a discount.
      Yes, don’t bother commenting further. All you write s puerile none sense

      • Geoff

        Saturday, October 10, 2020 at 7:56 am

        You expect the Thai government to support foreigners with financial help? Seriously! LOL. The stimulus package allows Thais to buy basic commodities – most of which no-longer have the means to do so. Better you keep your ‘puerile nonsense (one word) to yourself!

  4. ron

    Sunday, October 11, 2020 at 2:33 am

    Why doesn’t the foolish government stop with the nonsense and open up the economy?

  5. west tiger

    Sunday, October 11, 2020 at 1:13 pm

    The two things that could save the Thai economy the Government ignores, and that is make it easier for Farang tourists to return and reduce the value of the Baht

You must be logged in to post a comment Login

Leave a Reply

A seasoned writer, with a degree in Creative Writing. Over ten years' experience in producing blog and magazine articles, news reports and website content.

Follow Thaiger by email:

World9 hours ago

25 arrested in Germany suspected of leading a ‘right-wing’ coup

Thailand12 hours ago

23 military students hospitalised after being trained too hard

Thailand12 hours ago

Thailand News Today | British man who loves Thailand banned for 5 years for overstaying

Sponsored15 hours ago

Top 5 Backlink Agencies in Bangkok for Your Business

Crime12 hours ago

Police arrest another Chinese visa overstayer living it up in Thailand

Hot News12 hours ago

Christmas present to Phuket motorists: Patong Hill road to reopen

Thailand13 hours ago

Firework maker killed in firework accident in eastern Thailand

Join the conversation on the Thaiger Talk forums today!
Thailand13 hours ago

Lao star swindled by Thai celebrity, more than 500 million baht lost

Thailand14 hours ago

Father chains up daughter and forces her to return to abusive husband

China14 hours ago

China mulls downgrading Covid-19 status as protests continue

Business15 hours ago

Tesla to launch in Thailand this month

Apple15 hours ago

Two women sue Apple saying AirTag product gives stalkers access to their whereabouts

Thailand15 hours ago

Electioneering: Thaksin’s daughter vows to end poverty in Thailand

Thailand15 hours ago

Thai travel agent group says travel restrictions hamper tourism growth

Hot News15 hours ago

Thailand pushes for more international flights as tourism surges

Crime16 hours ago

Man stabs passersby in Bangkok, 1 killed 1 injured

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending