National —
On July 31st, 2024, Mr. Sorathep Rojpotjanaruch, the Chairman of the Thai Restaurant Business Association, revealed that the restaurant industry has faced a significant drop in spending, exceeding 50% recently.
The association had appealed to the Thai Prime Minister to address the current economic issues with immediate stimulus measures instead of solely relying on the upcoming 10,000-baht digital wallet scheme. More than half of the Thai restaurants in the association could close by year-end without prompt action, remarked Sorathep.
The combined impact of rising raw material costs and declining consumer spending has left small restaurants struggling. Medium-sized and SME establishments are also suffering due to increased tax burdens. The lack of government response to their initial appeal has left business owners feeling abandoned, questioning the effectiveness of the current administration, concerned Sorathep.
The association plans to follow up next week and escalate their concerns if no response is received.
Regarding the 10,000-baht digital wallet scheme, Sorathep voiced concerns about its effectiveness. He questioned why the government insists on distributing funds digitally rather than through familiar channels such as Paotang. Most participating businesses are large and medium-sized, contradicting the government’s claim of aiding local economics.
The scheme’s requirements favor medium-sized businesses, which often exclude small street food vendors. These vendors, unable to convert digital currency into cash, are left without liquid funds for daily expenses. This reality undermines the scheme’s intended local impact.
Sorathep noted that lump-sum distributions typically lead to immediate large purchases from major retailers, not benefiting small vendors. The anticipated economic boost is unlikely, and the need for cash will drive people to trade digital funds, creating a black market and further societal issues.
He suggested that if the government intends to distribute 10,000 baht, it should do so through direct bank transfers or existing applications like Paotang, which are already widely used. This method would be more effective, as many vendors already accept payments through QR codes and Paotang, avoiding the complications of a new digital wallet system.
Read our latest story about the 10,000-baht digital wallet scheme here.