Thailand launches price cuts to boost economy before digital wallet

The Ministry of Commerce, in collaboration with 150 manufacturers, retailers, and government agencies, is launching a nationwide price reduction event to alleviate living costs and stimulate the economy before the digital wallet launch.

Deputy Prime Minister Phumtham Wechayachai announced that the Ministry of Commerce invited government agencies, consumer goods manufacturers, wholesale and retail chains, the Thai Retailers Association, and other trade organisations to participate in the government’s economic recovery initiative. This comes ahead of the 10,000-baht digital wallet rollout scheduled for the fourth quarter of this year.

Initially, businesses have agreed to collaborate on three main activities aimed at economic recovery. First, they will reduce monthly rental fees for small businesses operating within welfare food centres and government-run markets.

The Ministry of Public Health has already begun reducing rental fees for sales spaces in its affiliated hospitals, totalling 1,000 locations. Additionally, leading online platforms like Lazada, Shopee, and TikTok will offer promotional pricing on their products. Thai Post will also reduce shipping costs.

Second, the initiative will expand sales opportunities for small businesses by organising monthly nationwide commerce fairs in all 76 provinces over three months. Locations will include provincial halls, tourist attractions, industrial estates, petrol stations, universities, and parking areas of wholesale and retail stores. These fairs aim to provide vendors with sales venues and reduce expenses for the public.

Third, major manufacturers will join forces to hold province-wide sales events across the country.

Remaining confident

The government will conduct this three-month economic recovery program from tomorrow, August 11, until November 20. Phumtham expressed confidence that the initiative would reduce costs and increase disposable income for small enterprises while alleviating living expenses for the public.

For the Ministry of Commerce, other markets under the supervision of various ministries, such as the Ministries of Interior, Public Health, Finance, Agriculture and Cooperatives, and Natural Resources and Environment, as well as those under the Bangkok Metropolitan Administration (BMA), like Chatuchak Market and Thonburi Market (Sanam Luang 2), are also participating.

Key BMA areas, including spaces under expressways, have started reducing rental fees for nationwide commerce fairs. Provincial commerce offices are currently preparing by setting dates and times for these monthly events in all 76 provinces over three months.

The fairs will feature Blue Flag goods, such as eggs, sugar, vegetable oil, rice, and other affordable community products like instant noodles, canned fish, seasoning sauces, laundry detergent, daily use items, electrical appliances, and clothing, aiming to cut living costs.

Additionally, discussions are underway with the Ministry of Defence to deploy military vehicles as mobile units, bringing essential goods to remote areas to ensure access to affordable products.

Plans are also in place to partner with members of the Thai Chamber of Commerce, the Federation of Thai Industries, consumer goods manufacturers, and both wholesale and retail outlets for a major nationwide sales event to further reduce living costs.

Cutting living expenses

Phumtham emphasised that the government’s three-month economic recovery initiative, which includes cost reductions for small enterprises, monthly nationwide commerce fairs, and significant sales events, will increase liquidity and income for small businesses while reducing living expenses.

This is particularly crucial as the nation awaits the 10,000-baht digital wallet program expected to launch in the fourth quarter of this year, which aims to stimulate the economy over these three months, reported KhaoSod.