InfoQuest (October 09, 2019) -- Regarding the measures for "gourmet, shopping and consumption" handout scheme of the second phase, it is expected that the plan will be submitted to the Cabinet for deliberation within October. At present, the Ministry of Finance is reviewing the report, because the Fiscal Policy Office (FPO), the Krung Thai Bank (KTB) and all other relevant agencies need to make a detailed evaluation of this scheme, according to Mr. Uttama Savanayana, minister of the Ministry of Finance. Unlike the first phase scheme, the cash handout will not be granted to 10 million recipients this time. Instead, the objects will be reduced to 5 million people. Therefore, the relevant terms and conditions must be revised and the registration time adjusted to daytime. The budget allocation for the second phase of measures is also under detailed consideration.
"As yet, the scheme has not been finalized, but it is expected that it will not take much time until the final decision is made. I have ordered the FPO, the KTB and other relevant agencies to complete a detailed evaluation as soon as possible and submit it to the Cabinet for consideration within this month ... The limit of the cash back is likely to be raised, but the corresponding conditions need to be set, because we hope to stimulate consumption in more second-tier cities. We will mull it in more detail", said the finance minister.
The registration of the scheme is expected to open to the public from November to December 2019, in a bid to stimulate economic growth in the year-end period.
"The registration of the second phase will open to fewer than 10 million recipients. A maximum of 5 million people can get access to Category 1 G-Wallet subsidy (Note: this scheme grants subsidies through the G-Wallet application, of which Category 1 G-Wallet subsidy can directly grant a subsidy of 1,000 baht). A detailed evaluation is under way. Those who have previously registered can also apply for preferential benefits again, but it must be conducted in a fair way. Meanwhile, the registration time is planned to be adjusted to daytime. Budget matters are under detailed consideration ... The second phase scheme is expected to be launched between November and December 2019, because we hope to promote economic development to achieve the target of this year. Tax cuts are also under review", said Mr. Uttama.
With regard to Thailand's economic growth trend this year, the Ministry of Finance hoped to make the assessment based on the results of many economic stimulus packages implemented earlier and the export situation.
"The Office of the National Economic and Social Development Council (NESDC) has set a 3 percent economic growth target for this year. And we will strive to push economic growth closer to this target. The economic assessment will be conducted after the second phase scheme is launched. Of course, this measure alone will not achieve the 3 percent growth target. It must be implemented in conjunction with other measures", Mr. Uttama said.
Mr. Uttama also talked about the appreciation of the Thai baht. After discussions with the Bank of Thailand (BOT), the finance minister learned that the BOT has been monitoring the exchange rate of Thai baht and has taken measures to ensure that the exchange rate of the currency is as consistent as possible with the real economic conditions of the country. The implementation of specific measures is within the responsibility of the BOT.
"The BOT briefed on me that it has been monitoring the exchange rate of the baht, and has taken corresponding steps in some cases to keep the exchange rate as consistent as possible with the real economic situation of Thailand. What kind of specific measures need to be taken to maintain exchange rate stability is the responsibility of the agency itself", said Mr. Uttama.
Mr. Uttama reckoned that the surging baht would cause two effects. On the one hand, it will be conducive to investment and help Thailand import all kinds of machinery and equipment from abroad at lower prices. On the other hand, it may hit the export sector. At present, it is not clear which industry is most affected.
"The appreciation and depreciation of a currency follow certain periodic rules, which must be utilized. The baht's surge will weigh on exports, but it is not clear yet which industry will be most affected. Exporters must adjust the response in time and relevant agencies should provide support in this regard", said the finance minister.
Source: InfoQuest, by Khara/Kasamarporn/ Rachada, translated by Xinhua Silk Road
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