Financial hardship of people very great: PM
Discussed: 20 Feb 2025 at 04: 39
Prime Minister Paetongtarn Shinawatra is urging the Bank of Thailand ( BoT ) to lower interest rates, claiming a drop will help lower the public’s financial burden.
Ms. Paetongtarn stated at the” Matichon Leadership Forum 2025 Trust Thailand” on Wednesday that the Thai economy started to show signs of recovery toward the end of last year, with growth reaching 2.5 %, slightly higher than the 2 % target set for 2023.
The treatment, she said, was driven by the president’s monetary stimulus measures that resulted in increased customer investing and a fall in tourist visitors following the expansion of the region’s visa-free policy.
The government is expecting the economy to grow by 3 % this year, spurred by higher private-sector investment, more consumer spending and the launch of several state investment projects.
But, Ms. Paetongtarn acknowledged that the nation’s rate of economic growth is minimal compared to other nations in the area as a result of low investment in the business industry as well as liquidity issues brought on by high interest rates.
She noted that commercial banks are cautious about lending money, which has led to a cash shortage that has had a significant impact on small and medium-sized enterprises ( SMEs ), which account for about 75 % of all businesses in the nation.
” The lack of access to funding is restricting our ability to invest and grow]Thai SMEs], which is starting to affect other business”, she said.
Commercial banks may consider cutting interest rates, which will also help many families who are struggling with daily costs, to ensure there is a sufficient supply of money.
She said a rate cut didn’t have an negative impact on the economy, as the country’s inflation rate is low.
At the conference, she highlighted a number of Pheu Thai activities which are meant to provide debt relief to businesses and homeowners, including the” Khun Su, Rao Chuay” structure, which was designed to help those struggling with loan, car, and SME mortgage payments.
The PM said several debt reduction plans rolled out by her state, as well as the previous leadership under Srettha Thavisin, have helped 830, 000 consumers clear their debts.
The government has instructed the Finance Ministry to hold discussions with the BoT to improve access to funding for borrowers and is assisting another 260, 000 people in clearing their debt accounts, she continued.
According to Ms Paetongtarn, the Srettha administration’s efforts to attract foreign investment have led to a 35 % increase in investment, totalling about 1.14 trillion baht, or 5 % of GDP.
She claimed that her government is working to reinvest the money into the economy and provide additional incentives for various sectors.