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Thailand: Sentiment index sees 9-month high
Consumer sentiment rose to a nine-month high in November, mainly driven by higher consumption thanks to the government’s co-payment scheme that subsidises 50% of food and goods purchased at small shops, and the Shop and Payback tax rebate scheme.
The University of the Thai Chamber of Commerce (UTCC) reported yesterday the consumer confidence index rose for a second straight month to 52.4 from 50.9 in October, following readings of 50.2 in September, 51 in August, 50.1 in July, 49.2 in June, 48.2 in May and 47.2 in April.
Thanavath Phonvichai, the UTCC president, said economic recovery prospects and higher prices for key farm products such as rice, rubber, oil palm and livestock products also help boost consumer sentiment.
For the co-payment scheme, the government pays for 50% of food, drink and general goods purchases of up to 150 baht per person per day, capped at 3,000 baht per person for the duration of the scheme.
The scheme started on Oct 23 and will end on Dec 31.
The Shop and Payback tax rebate scheme, which also runs from Oct 23 to Dec 31, allows taxpayers to deduct up to 30,000 baht spent on certain goods and services from their personal income tax.
The Center for Economic Situation Administration, which is chaired by Prime Minister Prayut Chan-o-cha, on Wednesday approved an extension of the co-payment scheme.
The second phase will cover an additional 5 million people, with subsidies raised from 3,000 to 3,500 baht per person.
The existing 10 million people who have already registered with the scheme will be eligible for an additional 500 baht.
The additional 5 million people should be added between January and March next year.
The scheme will also extend the rights of the existing registered people to March of next year.
The first phase used 30 billion baht under the 400-billion-baht rehabilitation budget.
There are 892,000 shops registered to join the scheme, and 9.56 million registered people, with combined spending of 33.4 billion baht.
Mr Thanavath said other positive factors include an economic forecast upgrade by the state planning unit, the National Economic and Social Development Council, to a contraction of 6% from the previous forecast of a contraction of 7.8-7.3%, and the policy interest rate being maintained by the Monetary Policy Committee at 0.5% this year.
Source: https://www.bangkokpost.com/business/2029707/sentiment-index-sees-9-month-high