News Forum - PM says government will make tackling household debt a priority in 2022

[Thaiger]

The Thai PM has used his New Year address on Facebook to reassure citizens that 2022 will be the year the government tackles household debt. PM Prayut Chan-o-cha says the government will focus on accelerating economic recovery and dealing with household debt in 2022. According to a Bangkok Post report, he acknowledges the economic hardships caused by the pandemic and associated lockdowns and restrictions, but praised the various stimulus measures put in place by his government. “I’m pleased that the measures have shown signs of easing people’s plight.” The PM says the re-opening of the country has helped to ease […]

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[KaptainRob]

Good luck with that Khun P.  Thai's need educating in how to manage money 1st and lenders, especially for new cars, should be reigned in.

The average household spends on lottery, phone credit, alcohol & tobacco ahead of food, clothing, rent and utilities ... loan sharks are doing a roaring trade to support house & car loans whilst defaults soar.

Open the country and water will find it's own level in the absence of Govt control.

[Prosaap]

And still the bath stay strong this can not last forever

[Shade_Wilder]

 

I think that this is Thailand's ticking time bomb.

"The PM says the re-opening of the country has helped to ease the situation somewhat and kick-started the economy. Across the service, industrial, and farming sectors, he says confidence has been buoyed and investments are looking up. The PM says government relief packages have maintained the public’s purchasing power and further stimulated the economy."

This is frankly pure BS.

Yes, it is a good thing for the economy to re-open the country a bit, but it has not yet occurred at a level consistent with wide-scale economic growth.

More specifically, every single person that I know who works in the tourist sector (approximately 15%-20% GDP) is drowning in household debt. Yes, the small re-opening in the last couple of months has the potential to help them, but more likely it'll hurt; hotels need to spend money (they don't have) for cleaning, re-hiring staff, advertising, etc. Restaurants need to re-hire staff and arrange food contracts with their vendors. Hell, beach-sellers need cash to buy their wares to sell on the beach. All of this costs money; where are they getting it after almost 2 years of no business? They are getting it from the loan sharks.

Every Thai person that I know who is connected to the tourism industry has re-scheduled their debts to come due around Songkran next year in the hope of having cash at the end of the tourist 'High Season'. 

What have they used as collateral for their loans from the loan sharks? Anything and everything. Their houses, their cars, their business, their future school fees for their children, their wives, their daughters, their parents' farms, etc., etc., etc.

And, all of this is off the radar and outside the formal banking system, which itself isn't doing well.

Next Songkran is going to be ugly as hell if there aren't many, many more tourists in Thailand soon.

BOOM! BOOM! BOOM! BOOM! BOOM!

KABLOOEY!

 

Edited January 3 by Shade_Wilder
smelting

[Thomazz59]

BINGO... I was taught by my parents to keep my income one-step above my lifestyle.. As of now I'llbe dead before I spend all my money..  FREEDOM....

[HolyCowCm]

Elections in some places so his lip service for free money they hopefully think will give some erections. He is not kidding anyone. The only thing he and his cronies have done is effectively take out the opposition of choice and keep themsleves all high and mighty.

Only way to help people here is to pray Covid goes away and open up the country, meaning open up everything including all type of businesses.

[longwood50]

[Stonker]

2 hours ago, Thaiger said:

2022 will be the year the government tackles household debt

How?

The "stimulus measures" encouraging travel ensured that Covid was spread liberally around the country, and instead of encouraging people to live within their means they have to spend what little they have in order to get the subsidy and if they don't spend it they don't get any subsidy to live on .

[Stonker]

1 hour ago, HolyCowCm said:

Elections in some places so his lip service for free money they hopefully think will give some erections. He is not kidding anyone. The only thing he and his cronies have done is effectively take out the opposition of choice and keep themsleves all high and mighty.

Only way to help people here is to pray Covid goes away and open up the country, meaning open up everything including all type of businesses.

If you understand how the subsidies work, apart from the very first it's not "free money".

If you don't spend or have the money to spend you don't get the subsidy.

[Dedinbed]

2 hours ago, Thaiger said:

PM Prayut Chan-o-cha says the government will focus on accelerating economic recovery

head on into a wall .?

 

2 hours ago, Thaiger said:

and dealing with household debt in 2022.

If you are in debt you are not a loan .. 

[Jason]

I believe Prayut absolutely.... he really is trying to help the Thai people get out of debt and have a better life..... I also believe in Santa Claus, the Easter Bunny and the Tooth Fairy

[HiuMak]

Thais culture of not saving for rainy days has themself to blame. Their carefree "Sabai" attitude of spending/eating lavishly today and not worry about tomorrow will never change.

[oldschooler]

 Cheap govt. subsidized bank credit for houses and cars for easy population control ……..how else do very low paid Govt clerks continue to get such loans with defaults through the roof …..poor education, Buddhism / monarchy religion, materialism and cheap food complete the govt. control of a dumb population. Brave New World indeed….

[MikeW]

12 hours ago, HolyCowCm said:

Elections in some places so his lip service for free money they hopefully think will give some erections. He is not kidding anyone. The only thing he and his cronies have done is effectively take out the opposition of choice and keep themsleves all high and mighty.

Only way to help people here is to pray Covid goes away and open up the country, meaning open up everything including all type of businesses.

Covid ain't going away 

[palooka]

Reining in the 10% a month loan sharks might be a good start.

[Marc26]

On 1/3/2022 at 1:17 AM, HiuMak said:

Thais culture of not saving for rainy days has themself to blame. Their carefree "Sabai" attitude of spending/eating lavishly today and not worry about tomorrow will never change.

Where is it that Thai culture doesn't save? Just another ignorant generalization that this forum is rife with.

Maybe the lower economic class, but that is the case in all countries.

 

Do you know some of the countries considered to be the best in the world have the highest household debt?

Do you know that your country, Australia, has a higher household debt ratio than Thailand?

 

Thailand definitely has a worrying household debt issue, but it isn't from "eating lavishly", it's from relatively small incomes vs mortgages/car loans

You know, things people actually need in their daily lives.......