Thailand plans $15.3 billion new stimulus package: FM
Southeast Asia’s second-largest economy has been hit hard by the pandemic as it is heavily reliant on exports and tourism
Thailand’s new stimulus package to alleviate the impact of the coronavirus crisis will be worth more than 500 billion baht ($15.30 billion), its finance minister ( FM) said.
It has already introduced two packages, the first to inject 400 billion baht into the economy and the second, worth 117 billion baht, to include cash handouts.
The latest is being worked on by the finance ministry, the central bank and relevant agencies, Uttama Savanayana said.
“We can’t tell the size yet as we are working on it. But it should be bigger than earlier two packages combined,” he told a news conference, adding: “We will try to do it quickly.”
Southeast Asia’s second-largest economy has been hit hard by the coronavirus pandemic as it is heavily reliant on exports and tourism. It has reported 1,524 cases of coronavirus and nine deaths as a result of the outbreak.
Thailand’s central bank expects the economy to contract 5.3% this year, which will mark the first shrinkage since the global financial crisis in 2009.
Uttama said Thailand has no plans to borrow from the International Monetary Fund (IMF) as its fiscal position is strong and it is able to tap other funding sources, including the fiscal budget.
Thailand’s Deputy Prime Minister Somkid Jatusripitak said last week that the government was ready to issue a decree to borrow if necessary.
Thailand’s tourist haven Pattaya devastated as coronavirus hits travel. Beaches are deserted in Thailand’s tourist haven of Pattaya, as business has ground to a standstill after worldwide travel restrictions because of the coronavirus pandemic.
For one of the world’s most famed tourism hotspots, the economic devastation is neartotal and business owners say haven’t seen anything like it for four decades.
“Our organisation has halted business 100%. Pattaya is a tourist city, we rely mostly on them. The whole city is affected by the virus,” Alcazar Show executive Pawin Phettrakul told Reuters.
Alcazar is not planning on laying off its staff at the moment, but the foreseeable future seems bleak.
Thailand depends on tourism for around 12% of its GDP, but in Pattaya, nearly the entire economy runs on visitors. The resort town saw over 15 million visitors in 2018, according to the 2019 Chonburi Provincial Statistical Report, which was already a 20% drop from the previous year.
“I would say that this is the worse that has ever hit Pattaya. And, during the past two to three weeks, so much businesses has already folded, has already went bankrupt, closed down due to the coronavirus,” said Roy Fu Wanlong, a business owner in Pattaya.
The city in recent years has been trying to shed its association with old type of tourism that started in the 1970s when it became a rest and relaxation spot for US soldiers during the Vietnam War.
The town has promoted family-friendly entertainment and boat tours in the city.
The Thai government banned entry for all non-resident foreigners on Wednesday but held off on restricting people’s movement inside the country as the government prepared to roll out emergency measures to contain the spread of the coronavirus.
New restrictions include the closing of all border crossings except for Thai nationals, diplomats and their families, and foreigners with work permits or other official documents allowing them to work in Thailand. “We are not closing the country, we are still allowing Thai people to return but for foreigners the country is closed,” Deputy Prime Minister Wissanu Krea-ngam told a news conference. He added that airports would remain open to flights from abroad.
Wissanu said the government had no immediate plans to impose curfews or travel restrictions within the country. But he said checkpoints would be set up to screen interprovincial travellers and an “all day curfew” could still be introduced in certain areas if coronavirus contagion worsened.
The government on Sunday closed down department stores, malls, dine-in restaurants, entertainment venues and other public places for several weeks in major cities across the country.
It is still allowing banks, government offices, pharmacies and grocery stores to operate as normal but urged people over the age of 70, children under five and people with respiratory and other health complications to stay home.
Meanwhile, Honda’s Thai business said it would suspend operations at two factories on Thursday after Thailand declared a state of emergency to curb the spread of coronavirus.