The Thai Retailers Association (TRA) wants to unlock the conditions for the "Thai Chuay Thai Plus" co-payment scheme by expanding eligibility to business of all sizes, supporting business continuity and employment.
The latest findings from the Retail Sentiment Index (RSI), jointly conducted by the Bank of Thailand and the TRA, indicate retail operators hold a more positive outlook towards the economy and consumer purchasing power from July to September, supported by the government's stimulus scheme, which is expected to inject liquidity into small shops and vulnerable micro-entrepreneurs.
However, based on an initial assessment the measure may result in consumer spending being concentrated among participating stores, while mid-sized shops and restaurants, tax-registered operators, and modern trade retailers may not benefit from the scheme in a comprehensive manner, noted the association.
The government should consider introducing targeted supplementary measures to support tax-registered medium-sized and large operators, or consider expanding eligibility under the co-payment scheme in its next phase, said TRA president Nath Vongphanich.
This move would help preserve employment, enhance business liquidity, and enable consumer spending to circulate more broadly and inclusively across the economy, the TRA noted.
"The RSI for May continued to decline across all components and all store categories, reflecting ongoing pressure from persistently weak purchasing power, coupled with elevated costs. However, the three-month outlook shows confidence returning above the 50-point level, as operators are hopeful the stimulus scheme can help sustain purchasing power and ease the cost of living in the short term," Mr Nath said.
"Yet operators are concerned once the scheme ends, purchasing power may slow again, while operating costs continue to rise."
As a result, most operators are preparing to gradually raise product prices across several categories, with increases expected to remain within 5%, said Mr Nath, a reflection of cost-push inflation, where higher production costs mean consumers face higher prices, rising living costs and weaker purchasing power.
Feedback from the co-payment scheme shows a shift in consumer spending, with consumers using their benefits primarily at small retailers and food delivery platforms, affecting the sales of medium-sized operators, particularly tax-registered restaurants as their sales have declined by 30-50%, noted the TRA.
Retail and restaurant operators with annual revenue exceeding 1.8 million baht registered under the value-added tax system are an important part of the economy, contributing to government revenue, employment and the broader supply chain, said the association.
These businesses face pressure from rising energy, transport and operating costs. Restaurants are shouldering raw material cost increases of 15-20%, while sales have declined for this segment, which does not meet the eligibility criteria for the scheme.
"We believe if the government expands the scope of assistance for the next stimulus measure to include tax-registered operators, it will help sustain both grassroots businesses and those that support the country's tax structure, enabling all parties to navigate the slowdown together," said Mr Nath.
The TRA said it is ready to support the government's policies and enhance the capabilities of retail operators, ensuring sustainable growth in Thailand.
