Price plunge extravaganza: Nationwide cuts on products and services to boost Thailand economy
A nationwide price reduction on over 150,000 products and services, ranging up to an 87% discount, has been declared with immediate effect in Thailand until the end of December. This is part of the government’s Quick Win policy initiative, aimed at reducing costs, boosting the economy, and expanding business opportunities, stated Commerce Minister Phumtham Wechayachai.
The agreement, reached yesterday, involves 288 business operators consenting to cut prices on their offerings for the next three months.
The participating entities encompass 88 essential consumer goods manufacturers, 83 distributors including modern trade malls, local shopping centres, home decoration and equipment stores, 110 service providers like hospitals and car service centres, 110 logistics companies, and seven online platforms.
The goods affected span three categories: food and beverages, essentials, and agricultural inputs. The first includes processed food, rice, seasonings, and beverages, totalling 3,058 items with a maximum discount of 87%.
Essentials, comprising daily necessities, electrical appliances, home decoration, tools, medicines, and medical supplies, make up 8,290 items with a top discount of 80%.
The agricultural inputs category, including fertilisers, agricultural chemicals, and animal feed, consists of 198 items with a maximum discount of 40%.
Service categories
Services are also grouped into three categories: medical services, car maintenance and repair services, and logistics and courier services.
Medical services cover 140,000 items with a maximum discount of 20%; car maintenance and repair services include 123 items with a top discount of 50%, and logistics and courier services comprise seven items with a maximum discount of 69%.
Phumtham believes this reduction will ease the cost of living by 2-3 billion baht and stimulate spending, fuelling the economy during the crucial end-of-year period.
The impact on the inflation rate in the fourth quarter remains to be seen. The ministry is also committed to assisting manufacturers and businesses with cost-reduction strategies and addressing regulatory obstacles.
Pun Paniangvait, from the president’s office of Thai President Foods Plc, producer of Mama instant noodles, indicated that such price cuts are feasible due to the collaborative efforts of various parties.
He further explained that a decrease in any of the elements, such as flour, palm oil, electricity, transportation and labour, that contribute to the 7 baht cost of producing a packet of instant noodles, could result in lower product prices. However, he clarified that it’s not solely the manufacturer’s responsibility to reduce prices, reported Bangkok Post.
Pun also noted that purchasing power had declined during the period when the government had not yet been established. Nonetheless, the new government’s various policies have resulted in increased public confidence, which anticipates a boost in consumer spending in the final quarter.
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