The CCP has adjusted its forecast for the Thai economy for the whole year 2021 to -1.5% to 0.0%, mainly due to COVID-19. risk entering a recession Ready to speed up the government to control the epidemic speed up the procurement of vaccines infection testing for the public
On August 4, 2021, Mr. Phayong Srivanich later revealed that he was the chairman of the meeting of the 3 private sector committees (KorKor.) for August 2021 and as the chairman of the Thai Bankers’ Association that the meeting of the CCC reduced the Thai economic projection for the year. 2021 to -1.5% to 0.0%, with factors depending on the severity of COVID-19. and additional measures of the state Export It is expected to grow from 10.0% to 12.0% due to the recovering global economy. But it is critical to maintain the supply chain from widespread infection.
The government has given urgent importance to the provision of vaccines to the labor force thoroughly. Headline inflation will stay in the range of 1.0% to 1.2%, under pressure from rising energy prices and transportation costs. which affects the cost of product manufacturers
It is seen that the Thai economy is at risk of entering another year of recession due to the new wave of COVID-19 affecting the second half of the year. Controlling the spread of the COVID-19 virus not yet successful daily number of infected people Including the number of cumulative patients in the hospital is still increasing at a high rate. Despite the 14-day lockdown measures, the government has to extend the current lockdown measures until the end of August. And expanding to many provinces. If the distribution of vaccines against COVID-19 to the people of the whole country is still slow Assessed that there is a high risk of limiting economic activities throughout the fourth quarter, as well as reducing the possibility or benefit of the plan to open the country.
Therefore, the Thai economy during the rest of the year is in a difficult condition to recover. And it is highly likely that the economy in the second half of the year will shrink compared to the previous year. This could put the Thai economy in 2021 into a recession for the second consecutive year even though the global economy is able to recover strongly.
In addition, all business sectors are now affected by the escalating outbreak. not even the export sector The long-standing economic stagnation caused by strict epidemic control measures has affected the income of entrepreneurs, especially SMEs and workers. This was reflected from debtors who were in the care of various banks under the Bank of Thailand’s debt restructuring measures, amounting to 1.89 million accounts, or about 2 trillion baht.
in the future In addition to service business, tourism and general trading fragile Covid-19 outbreak In the labor sector, it has begun to affect the manufacturing and export industries. which is the only engine of the Thai economy in recent months. Therefore, all sectors must work together to integrate measures to limit the cycle of the epidemic. by accelerating the availability of primary vaccines and alternative vaccines to meet the needs of the people and to create a group immunization as soon as possible and accelerating the spread of infection detection by Antigen Test Kit to isolate the infected persons asap
The government must be prepared for the recovery and recovery of the crisis economy. The government needs to build confidence by preparing for the adequacy of the budget. The public debt ceiling should be extended to more than 60 per cent of GDP to 65-70 per cent in order to fit the mission of healing and rehabilitating the economy in times of crisis. In addition, the Bank of Thailand needs to consider ways to relax monetary policy and additional measures with financial institutions under the limitation that the policy interest rate is near 0% to help. maintain the stability of the country’s financial system
Mr. Phong also said that The stability of the business and household sectors is at risk. Households face rising debt burdens above 90 percent to GDP and are in need of reparation to compensate for the lost income during this period and to restore stability in the period ahead.
For upgrading and expanding the area this time, it is an adjustment according to the situation with more outbreaks in the provinces by assessing the additional impact as 300,000-400,000 million baht (dark red area, accounting for 78% of the country’s GDP), the situation is now elevated, close to April last year. Economic activity and people’s mobility were greatly reduced. If there is a lockdown, it is necessary to accelerate other measures along with it. The need to speed up the control of the epidemic, especially the delta strain that has a high rate of vaccine distribution and fast. Added the ability to accelerate vaccination, Home Isolation and Company Isolation.
In addition, measures to help mitigate the impact of the closure of business activities must be issued. and allow the easing of economic activities to go on The private sector now joins in lightening the burden of the government in taking care of their employees and implementing various measures. In particular, many of them have done Active Screening using Rapid Antigen Test Kit to speed up the isolation of people who are not stuck. to have an outbreak in the workplace Including taking care to link the system with hospitals and various hospitals as well by collaborating with all sectors must participate. have both economic and social responsibility
However, to suit the economic needs and to alleviate the impact of the people Propose to extend the period of tax reduction of land and buildings by 90 percent for another year of tax collection 2022 (effective from January 1, 2022 until December 31, 2022) proposed The government sector increased the percentage of guarantees for damages through the Small Industrial Credit Guarantee Corporation (TCG) to 60 percent or more in order for financial institutions to provide more credit to entrepreneurs affected by COVID-19.
Ask the Revenue Department for a 3-year tax exemption from SMEs, which requires a single account and tax filing through the E-Tax system. The government should have a single command (Single Command) in order to manage the Covid-19 situation. It proposed that the government allow the private sector to import vaccines freely without going through manufacturers or distributors and government agencies. under the supervision of the government The government is the one who issues the purchase order and pays the expenses for the FDA to expedite approval of other brands of vaccines without having to wait for the vaccine company to submit the documents. to increase options and open up more opportunities for vaccine procurement Ask the government to support the tax deduction 2 times for the private sector who pays for the purchase of an urgent Covid-19 test kit (Antigen Test Kit) and the cost of the Covid-19 vaccine for the private sector to help support the process. Manufacturing and supplying medicines “Favipiravir” is in high demand.
The Thai Bankers’ Association and member banks Has continuously issued measures to help all groups of customers. Recently, has issued urgent measures by suspending principal and interest payments to SMEs and retail debtors for a period of 2 months to debtors who are directly affected. Both in the control area of 29 provinces and outside the control area that must be closed due to official measures. The application submission period is from 19 July-15 August 2021. The principal and outstanding interest will not be charged immediately. in order not to be a heavy burden on the debtor
Financial measures to help rehabilitate business entrepreneurs affected by the epidemic of the virus The Bank of Thailand (BOT) reports information on the progress of submitting applications under the Royal Decree (Royal Decree) on assistance and rehabilitation of business operators affected by the coronavirus outbreak. 2019 2021, the latest as of 27 July 2021, the BOT reported the number of loan applications for rehabilitation. And the loan has been approved, amounting to 82,767 million baht, representing the number of 27,219 people receiving assistance, the average amount approved is 3.0 million baht per person.
While the progress of the project, “Break Sap, Settle Debt”, has a total asset value of 1,060 million baht, representing 18 people who have received assistance.