Thai economy not yet hit bottom; SMEs and tourism sector in liquidity shortage

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SMEs and businesses in the tourism sector were hit the hardest since the lockdown.

The co-payment scheme, which is one of the government’s economic stimulus projects, has been well-received, but members of the opposition Pheu Thai Party say that it does not address the country’s economic problems. They are urging the government to better look after small and medium-sized enterprises (SMEs), many of which have low liquidity and have shut down their businesses, including those in tourism sector.



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The Pheu Thai’s economic team, led by deputy leader Pichai Naripthaphan and Nong Khai MP Krisada Tanterdthit, said today that the Thai economy remained negative in the third quarter. Although economic activity improved, it doesn’t mean that the economy has passed its lowest point, as claimed by the government’s economic team. According to the opposition party, the government’s measures, such as taste, shop, spend; co-pay and shop and payback, are campaign policies that cannot address the economic problems.

Members of the opposition Pheu Thai Partyare urging the government to better look after small and medium-sized enterprises (SMEs), many of which have low liquidity and have shut down their businesses.

Ambassadors from the United States, England, Australia, Japan and Germany, all of which are Thailand’s trading partners, have proposed 10 measures to the government concerning reform and the ease of doing business. The Pheu Thai Party said it had also proposed them to the government a long time ago. It suggested that the government digitalize the civil service system to ensure transparency, provide convenience and promote efficiency. It would also prevent redundancies and corruption. These recommendations would help Thailand rank in the top 10 countries for ease of doing business.




The Pheu Thai Party also urged the government to urgently help the SMEs, as they are experiencing a liquidity shortage and many of them may have to close their business, which would lead to unemployment and bad debts. The opposition also wants the Bank of Thailand (BOT) to help weaken the baht, so as to boost SMEs’ export performance and price competitiveness. (NNT)