Operators seek more aid to spur spending
Retailers have called for more stimulus packages to spur spending and continued cost-reduction programmes through subsidies on power and water bills, lending rates and expenses related to the Covid19 pandemic.
According to Chatrchai Toungratanaphan, Thai Retailers Association’s vice-president, the government should introduce stimulus packages like the ‘Shop Dee Mee Khuen’ (shop and payback) scheme which offers a tax deduction of up to 30,000 baht when purchasing goods or services to spur spending.
The government should upgrade the readiness of the public health system such as an acceleration of vaccine and antigen test distribution, medical supplies and medicines as well as hospital beds for patients with serious symptoms.
Proactive approaches are also required for high-risk areas, with infected clusters having to be immediately closed once detected, he said.
Mr Chatrchai said the government should continue programmes that help alleviate the cost of living, notably through subsidies on electricity and water bills, interest rates of financial institutions and expenses related to the Covid-19 pandemic.
In a related development, the association reported yesterday the Retail Sentiment Index slightly increased to 68.4 in December, up from 62.1 in November.
This shows spending during the New Year festive season was quite active.
However, another key driver of higher spending per bill stemmed from rising product prices.
“Higher spending per bill does not reflect real consumer purchasing power. Therefore, it is still necessary to have more stimulus packages within this year,” he said.
According to Mr Chatrchai, the sentiment of retail operators in all regions was found to improve in December, particularly in the North and Northeast.
After the government relaxed its lockdown and curfew measures, more people started travelling into the two regions.
Most retailers still see overall consumer purchasing power has yet to recover. They were also found to have growing concerns about the government’s reinstated lockdown measures to contain a spread of the new Omicron variant.
Mr Chatrchai said retailers themselves have already realised growing threat from the Omicron variant and prepared their backup plan if the new variant outbreak becomes prolonged.
Some 63% of retailers plan to put more focus on selling their products online channels, while 40% of them will reduce their operating costs and reduce employment and 30% of them will continue their business as usual until the state orders for them to close.
According to the survey, 58% of retailers need more state support in terms of tax perks and expenditure reduction, with 55% requiring continued stimulus packages and 43% wanting the government to help subsidise their labour wages.