The Thai Chamber of Commerce has asked the government to continue the "Khon La Khrueng" co-payment subsidies until the end of 2022, end the Test & Go scheme, and quickly reclassify Covid-19 as endemic to boost growth and tamp down signs of stagflation.
Sanan Angubolkul, chairman of the chamber, said the economy has yet to fully recover while Covid-19 outbreaks persist, and the Russia-Ukraine war, which triggered a sharp rise in global energy prices, has exacerbated the situation.
"The Thai Chamber, is, therefore, asking for an extension of the Khon La Khrueng co-payment subsidy scheme, which is scheduled to end this month, until the end of this year to reduce people's cost of living," he said. "The slow pace of the country's economic growth coupled with a relatively high inflation rate may cause the country to face a possible bout of stagflation."
Stagflation is a combination of stagnation and inflation. It describes an economic condition characterised by slow growth and high unemployment, alongside rising prices.
Conceptually, stagflation is a contradiction as slow economic growth likely leads to an increase in unemployment, but should not result in rising prices.
Mr Sanan lauded the Khon La Khrueng co-payment subsidy scheme, citing it as a beneficial scheme that helps the public reduce their living costs and increase their spending power.
"Thailand has received a knock-on impact from the escalating international conflicts, which partly resulted in a sharp rise in domestic product prices," he said. "Although the government has rolled out a spate of measures to help alleviate the cost of living and raise people's purchasing power, they are not enough and do not live up to the rapidly changing situation."
According to Mr Sanan, the private sector has also called on the government to ask parliament to quickly debate and approve the expansion of the ceiling of the public debt-to-GDP ratio to 70%, from 60%.