Bangkok: Vice President of the Thai Retailers Association reveals that the retail index in December 2023 grew less than expected even though it is a New Year's travel period but still not good. Suggesting that the government open up loans for SMEs. Ready to accelerate travel Reform measures to protect cross-border goods Thai Retailers Association in collaboration with the Bank of Thailand Revealing the results of the survey of confidence (Retail Sentiment Index) of retail entrepreneurs in December 2023 compared to November 2023, increased in every component but not completely. It increased by only 9.5 points due to store sales promotions during the year-end celebrations. The dragging factors are still the same factors that are waiting for relief, such as stagnant purchasing power. Quagmire of household debt High energy and utility prices Meanwhile, the retail confidence index for the next 3 months (Jan.-Mar. 2024) increased slightly by 0.3 points. This is as a result of the Easy E-Receipt measures and the C hinese New Year festival. But the overall picture is still growing slightly. No leap forward due to uncertainty in government economic stimulus measures, especially digital wallets, approval of the fiscal year 2024 budget that may be delayed, resulting in many government projects such as the tourism sector It may be necessary to delay or postpone operations. Mr. Chatchai Tuangratanaphan, Vice President of the Thai Retailers Association said the survey results The Nationwide Retail Sentiment Index (RSI) in December 2023 increased in every component and every region. From the sales promotions of stores and the end-of-year atmosphere that stimulates consumer spending to a certain extent. by increasing slightly While the first quarter of 2024 increased but not much. From the benefits of Easy E-Receipt measures and marketing campaigns during the Chinese New Year festival However, if considering the overall picture throughout 2023, the results of the nationwide retailer confidence index survey It was found that th ere was still an unbalanced recovery in a K-Shaped manner, with the parts that recovered including the department store-fashion, beauty-lifestyle groups. convenience store and supermarket And another part that has not yet recovered is the hypermarket retail group. (Hypermarket) and the Provincial Wholesale-Retail Group (Local Modern Store). The groups that are stable are construction materials, decoration and maintenance, smartphones, and IT. When classified by region It was found that Bangkok and surrounding areas and tourist provinces will recover well. Other regions are still slowing down. Except for the northeastern region, which has been depressed for a long time, reflecting still weak purchasing power. For the overall direction of the retail and service business in 2024, the Thai Retailers Association expects the market value to be at 4.4 trillion baht, growing approximately 3-5% compared to GDP in 2024 that is expected to grow 3.5 - 4.4%. It is seen that the store-based retailing business group will r eturn to its value as before the COVID-19 period. As for the type that does not have a storefront (Non-store retailing), such as selling through online (E-commerce), sales through automatic machines (Vending Machines), etc. continue to grow. However, the Thai Retailers Association would like to make a suggestion. Guidelines for stimulating the overall retail and service sector to the government, such as 1. Reduce inequality and encourage competition in accessing SME loans. 1.1 Open the free financial market to new financial institutions. Login to make interest competitive. 1.2 Reveal transparent financial information to create fair competition among road service providers. Finance and loan applicants Including using the Risk based management system to measure the risk level of approval. Applying for a loan 1.3 Accelerate the procurement of low-interest soft loan funds for SMEs with simple, easy-to-access conditions to reduce costs and increase financial flexibility. 2. Approve the addition of new forms of employment, including independent employment. Permanent hourly employment, with wages determined according to the level of professional qualifications in accordance with the standards of the Professional Qualifications Institute. In addition to considering the minimum wage To reduce the problem of labor shortages in the retail and service sectors In addition, the development of labor skills, Upskill Reskill, should be promoted as well. 3. Issue measures to stimulate tourism. with clear conditions covering all groups By organizing a campaign to stimulate tourism. Highlight soft power Ready to focus on tourism in secondary cities To create jobs and distribute income in various regions. 4. Create fair competition With measures to prevent cheap imported products from China Especially selling on e-commerce. In order not to affect the price structure of Thai SME products. 4.1 Require that the company be properly registered and have a clear policy regarding products and services, such as counterfeit or substan dard products. Including products that are not morally correct 4.2 Adjust the online tax collection model to actual transaction data. (Transaction-based) where online platforms should be required to collect taxes every time a trade is made. 4.3 Increase tax collection measures for Gray Market products, which results in the government losing income from tax collection. Including the trade unfairness of entrepreneurs in the country. In this regard, the issue regarding 'Increased interest rates and loan applications' of entrepreneurs surveyed between 18-25 Dec. 2023 as follows: 1. Impact of increased interest rates - 68% businesses are affected, divided into 63%, their debt burden has increased but they are still able to pay as usual. Even though the existing debt burden increases and another 5% may default on debt, request debt restructuring, or request an extension of repayment time - 32% businesses are not affected by increased interest rates. 2. Barriers in requesting credit from financial institutions - 45% businesses face more obstacles in accessing credit from financial institutions, divided into 36%. Financial institutions take longer to consider loans and adjust margins for higher interest rates, 6 % received a reduced credit limit, 3% adjusted loan conditions to be more stringent - 55% businesses were not affected in accessing credit. However, the Thai Retailers Association It is seen that the overall picture of retail and services in 2024, especially in the second half of the year, will begin to signal positive signals but will still require support from the government to push projects and measures in every dimension in a concrete, clear, and targeted manner. In order for the Thai economy to recover in the long term with potential, the association is ready to cooperate with all sectors and is willing to fully support the government sector. To jointly drive the future of retail and services in the new era of Thailand to return to stable and sustainable growth Source: Thai News Agency