Amidst global trade tensions and the pressure posed on local industries by the surge in imported goods, the Bank of Thailand is urging the government to prioritize the newly approved 157 billion baht economic stimulus fund to support exporters and local manufacturers.
On May 20, the government cabinet approved an economic stimulus plan proposed by the Ministry of Finance, which includes reallocating the budget originally designated for the digital wallet program (Phase Three) to other projects. To assist with cabinet decision-making, the Cabinet Secretariat urgently requested the central bank for input on relevant matters.
Bank of Thailand Governor Sethaput has submitted key recommendations to the cabinet, summarized as follows:
The central bank supports timely review and adjustment of budget direction according to the current economic situation, with a particular emphasis on investing in infrastructure development, enhancing productivity, and maintaining employment levels in the manufacturing and export sectors. The manufacturing sector is currently under dual pressure from trade wars and retaliatory tariffs imposed by major economies.
The central bank specifically noted that the budget should be prioritized for aid to the following groups: enterprises exporting to the US and related supply chain industries; local manufacturers affected by the surge in imported goods, especially small and medium-sized enterprises (SMEs), as they have limited adaptability and are the most severely impacted.
According to statistics, between 2022 and 2024, Thailand's total imports of finished goods increased by approximately 13 billion USD, further exposing structural issues in the local manufacturing sector.
As a result, the stimulus projects should include measures to enhance competitiveness and expand into new markets, especially targeting SMEs.
The central bank warned that if the issue of the influx of imported goods is not addressed directly, the effectiveness of other stimulus measures could be weakened. It suggested the following actions: strengthening standard control and customs inspections to prevent the inflow of substandard goods and to prevent transshipment via Thailand for re-export. Accelerating investigation and dispute resolution mechanisms for dumping and unfair trade practices. Requiring online platforms selling goods in Thailand to establish local offices to facilitate product standard regulation and the collection of value-added tax. Implementing additional tax control measures, such as imposing import duties or value-added tax on imported goods valued at less than 1,500 baht or setting import quotas.
On May 20, the government cabinet approved an economic stimulus plan proposed by the Ministry of Finance, which includes reallocating the budget originally designated for the digital wallet program (Phase Three) to other projects. To assist with cabinet decision-making, the Cabinet Secretariat urgently requested the central bank for input on relevant matters.
Bank of Thailand Governor Sethaput has submitted key recommendations to the cabinet, summarized as follows:
The central bank supports timely review and adjustment of budget direction according to the current economic situation, with a particular emphasis on investing in infrastructure development, enhancing productivity, and maintaining employment levels in the manufacturing and export sectors. The manufacturing sector is currently under dual pressure from trade wars and retaliatory tariffs imposed by major economies.
The central bank specifically noted that the budget should be prioritized for aid to the following groups: enterprises exporting to the US and related supply chain industries; local manufacturers affected by the surge in imported goods, especially small and medium-sized enterprises (SMEs), as they have limited adaptability and are the most severely impacted.
According to statistics, between 2022 and 2024, Thailand's total imports of finished goods increased by approximately 13 billion USD, further exposing structural issues in the local manufacturing sector.
As a result, the stimulus projects should include measures to enhance competitiveness and expand into new markets, especially targeting SMEs.
The central bank warned that if the issue of the influx of imported goods is not addressed directly, the effectiveness of other stimulus measures could be weakened. It suggested the following actions: strengthening standard control and customs inspections to prevent the inflow of substandard goods and to prevent transshipment via Thailand for re-export. Accelerating investigation and dispute resolution mechanisms for dumping and unfair trade practices. Requiring online platforms selling goods in Thailand to establish local offices to facilitate product standard regulation and the collection of value-added tax. Implementing additional tax control measures, such as imposing import duties or value-added tax on imported goods valued at less than 1,500 baht or setting import quotas.