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

Maya Taylor

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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

 

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8 Comments

8 Comments

  1. Avatar

    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. Avatar

    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.

    • Avatar

      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. Avatar

    Glenn

    Friday, October 9, 2020 at 2:23 pm

    DUH

    • Avatar

      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

      • Avatar

        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. Avatar

    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. Avatar

    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

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