JSCCIB pushes for stimulus continuity

JSCCIB pushes for stimulus continuity

Kalin Sarasin, chairman of the Thai Chamber of Commerce and a member of the Joint Standing Committee on Commerce, Industry and Banking.
Kalin Sarasin, chairman of the Thai Chamber of Commerce and a member of the Joint Standing Committee on Commerce, Industry and Banking.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is calling on the government to carry on with economic stimulus measures and fine-tune them to help Thailand get through the final quarter this year, when the country will likely encounter further risk factors.

Among them is a possible second outbreak in Thailand, which would cripple a domestic economy still struggling to recover, said Kalin Sarasin, JSCCIB member and chairman of the Thai Chamber of Commerce.

"Other risks include the baht fluctuating and the outcome of the US presidential election in November," he said after a JSCCIB meeting on Wednesday.

The government earlier launched the We Travel Together tourism campaign to boost domestic tourism spending. The campaign received a lukewarm response, despite authorities subsidising 5 million nights of hotel accommodation at 40% of normal room rates, with the subsidy limited to 3,000 baht per night for up to five nights.

JSCCIB supports this measure, but wants the government to revise some conditions.

Mr Kalin did not elaborate on the revision proposal, saying only the group "wants to hear from the CESA first," referring to the Center for Economic Situation Administration.

The private sector earlier suggested the government increase subsidies for hotel rooms to 60% from 40%.

JSCCIB also wants the government to continue its excise tax reduction for jet fuel and speed up issuing soft loans to domestic airlines to help them cope with the fallout.

Supant Mongkolsuthree, JSCCIB member and chairman of the Federation of Thai Industries, said he is worried about the export sector as the virus shows no sign of abating in many European countries and some in Asia, including India and Myanmar, which borders Thailand. Despite these concerns, JSCCIB upgraded its export outlook, expecting a contraction of 8-10% this year, not 10-12% as earlier predicted.

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