The government should focus its aid measures more on the grass roots in a move to stimulate the economy in the short term, says Dhanin Chearavanont, the agribusiness tycoon and chairman of Charoen Pokphand (CP) Group.
Prime Minister Prayut Chan-o-cha is flanked by CP Group chairman Dhanin Chearavanont (right) and billionaire Charoen Sirivadhanabhakdi (left) at yesterday's launch of the campaign to cut consumer prices from Dec 24-30 as part of the government's 'New Year gifts'. Chanat Katanyu
"If the government wants to spur economic growth in the short term, it should allocate significant spending to low-income earners, as those people will immediately spend to buy Thai products in contrast with rich people who opt to keep their money in the bank," he said yesterday.
"This will cause a multiplier effect of 10 times, especially once the budget is allocated to low-income earners."
Mr Dhanin was speaking at Government House while attending the launch of the campaign to cut consumer prices from Dec 24-30 as part of the government's "New Year gifts".
At the campaign, retailers and suppliers have agreed to cut their product prices at 12,800 outlets nationwide by 10-70%.
The retailers are Tesco Lotus, Makro, Big C Supercenter, Central, Robinson Department Store, The Mall Group, Tang Hua Seng, Tops Supermarket, Foodland, MaxValu, JC Mart, 7-Eleven, FamilyMart, Lawson 108 and CP Freshmart.
The campaign is expected to help lower people's cost of living by as much as 15 billion baht.
Mr Dhanin also proposed the government reduce personal income tax while suggesting private companies give money to their employees instead of paying for New Year parties. These methods are aimed at stimulating the economy in the short term.
He said the world's economic condition was expected to slightly affect Thailand, given the fact that shipments to Asia now accounted for 50% of Thailand's exports, with the US and Europe comprising only 20% and other countries including Russia and African nations accounting for the other 30%.
In the past, the US and Europe represented half of Thailand's export markets. Mr Dhanin urged Thai entrepreneurs to focus more on Asia, saying it would play an increasingly significant role in the Thai economy. He also voiced his full support for the government's policy to set up special economic zones, saying CP Group was interested in investing at Mae Sot and Aranyaprathet.
Mr Dhanin also suggested the government attract investors from nearby countries to invest in special economic zones.