Cabinet Resolutions

• The Cabinet has approved an extension on the State of Emergency to control the spread of covid-19 in Thailand until May 31 which included extension of the night curfew, ban on inbound flights and land traffic, as well as gatherings in large groups.
• All four public holidays in May will be observed as usual, but the government has issued directions for the people to stay home and not to travel.
• A government spokesperson has announced that Thailand will be handing out 5,000 Baht relief grants to 5 million farmers from May to July.
• As for the 5,000 Baht cash handouts for people not covered by the SSF, it has been extended to include 16 million people, previously 14 million.
• The Bangkok Metropolitan Administration (BMA) is looking to restart businesses, the first group including restaurants, markets, exercise venues, parks, hairdressers, clinics, animal hospitals and grooming parlors, golf courses and driving ranges.

Silver Lining amid Covid-19

• Covid-19 has undoubtedly been a nightmare for many around the world, but from a drop in pollution level to being the single largest driver to a cashless economy, we look to the light in the situation.
• An AMCHAM member in the banking industry states that payments and services are now forced to be more digital. It has become a necessity if you want your business to thrive in the current economy.
• PromptPay has been developing rapidly across regions in Asia and some parts of the western hemisphere and this outbreak has only pushed its already growth rate of 90% year-on-year even higher.
• As more and more companies begin their digitization phase to meet these new needs, ideas and implementations will start coming in from various angles. Consequently, once the outbreak is over, we will return to a new normal, where life and business is much more dependent on electronic payments.

Thailand 4.0

• The e-tax payment issued by the Thai Revenue Department in early 2020 was one of the initiatives to begin the digitalization stage of Thailand, in which the government hopes to enhance productivity and boost economic growth.
• This goal to become a future-ready nation needs to be taken up by both companies and the government, companies need to want to be a part of the system for it to work.
• However, the concept of going digital is not the same for everyone, usually for a small business, streamlining your workflow process to make digitalization work for you would count.
• But to make a difference and increase efficiency on a national scale, the government would have to set clear guidelines and incentives for companies to want to tag along.

SME Soft Loans

• On April 30, AMCHAM SBE Committee with GTCC and BCCT will host a meeting with the assistant governor of the Bank of Thailand on the topic of the new SME soft loans.
• A member company expressed that there was difficulty getting the loans and banks were reluctant as they see it as a riskier proposition than lending to MNCs.
• In order to reduce the effect of covid-19 on the economy, the government is doing two things in terms of monetary policy, cutting interest rates and injecting capital into the market.
• Cutting interest rates is great for both the economy and borrowers in these situations. However, banks are paying the toll as their margins continue to get thinner and thinner.
• In terms of capital injection, the government is offering cheap funding to banks to give out loans, but they are not easing the restrictions and regulations from a regular loan. Thus, the risk element is still there and is getting bigger and some banks are not willing to take it in the current situation.
• It is estimated that there will be much better cooperation from the financial industry once the government restructures the scheme more appropriately and provide incentives for both parties.