Thailand’s Economic Front in Fighting COVID-19
Thailand has performed well in containing the COVID-19 outbreak andmitigating its impact. Since 27 April 2020, the number of new COVID-19 cases has
increased only slightly, while some days saw no new cases at all. About 96 per centof those infected have fully recovered, and fatality rate is less than 2 per cent,
Ministry of Foreign Affairs of Thailand states.
In tandem with public health measures, the government is addressing
economic risks by injecting loans and financial assistance to the people. Someobservers rightly noted that if the economy is an ailing patient in dire need of oxygen,the cash flow pumped in by the government is comparable to the breath of fresh air
in a stale room.
To date, Thailand has approved economic relief measures in three phases thatcater to entrepreneurs, blue collars and households so that sources of revenue,
whether in the form of income, aid or loan is accessible by every vulnerable sector ofsociety. The overarching principle is to maintain liquidity and allow cash to remainin the hands of the people. These measures could be roughly categorised into threeobjectives, namely, to ease public expense burden, to add revenue and to keep theeconomic engine lubricated and running.
On easing expense burden, water and electricity bills in all households werewaived or discounted for three months. Personal and corporate income tax filing andpayment deadlines have been extended. Withholding tax rate is reduced from 3 to 1.5
percent for six months. State properties rental fee that are used for residential andagricultural purposes will be exempted for one year. Furthermore, financial
institutions are to postpone clients’ payment of loans for cars, motorcycles andhousing.
Adding revenue is more challenging since all the engines of economic growth
are nearly paralysed. Since the government is the last standing ‘big spender’ in themarket, it is employing every possible channel and mechanism to ensure that therelief is inclusive. For instance, laid-off informal workers have been receiving 5,000
baht to compensate wages for three months while those registered with the Social
Security Fund will receive 70 per cent of their wages up to 200 days. A 40-billion
baht loan programme will enable those eligible to obtain a 10,000 baht emergency
loan with a monthly interest rate of 0.1 per cent. At the same time, SMEs can apply
for a low interest loan from the Government Savings Bank and SMEs Bank. The
government has also approved a 150 billion baht budget for the distribution of
15,000 baht to ten million registered farmers.
Measures to sustain the economic sectors include the initiative for the Bank ofThailand to provide 500 billion baht of soft loans to financial institutions so that theycan offer loans to certain SMEs. Another one trillion baht has been allocated toresuscitate sectors from agriculture to tourism. Moreover, Thailand is investing in

-2human resources by providing training in necessary skills such as language training
for tour guides and business management for entrepreneurs.
Most importantly, the government has gradually relaxed certain restrictions inphases since 3 May 2020, to let businesses revive. The decision was made based on
the satisfying outcome in controlling COVID-19. The first group of establishments tobe back in service included restaurants, food stalls, street vendors, markets, hairsalons, healthcare facilities and golf courses. Consequently, the government
permitted shopping malls and larger businesses to re-open. This, however, does notmean that our fight against the pandemic is over.

Future Direction
While the prospect for Thailand in overcoming COVID-19 may appear
promising, all the roads to economic recovery hint rocky hurdles. Gurus have alreadyforecast a bleak annual growth for Thailand and around the world. Nonetheless, allsectors are taking advantage from this “time out” to make necessary preparations forthe post-COVID-19 landscape.
COVID-19 has become an accidental accelerator for Thailand in redesigning its
future towards a more innovative and sustainable economy, a plan that Thailand has
been pursuing for some years. In the absence of tourists, Thailand is improving thequality of tourism services by developing technology-based solutions and expanding ecommerce applications. Thailand’s nature and national parks entered a “spa phase,” andhave been restored to a pristine condition. Don Mueang International Airport inBangkok is undergoing renovation. With social distancing in mind, the Tourism
Authority of Thailand is targeting smaller tourist groups, focusing on quality overquantity, and enhancing health tourism.
Economic activities in Thailand need to go more online, just like other countries.
‘Business as usual’ is being redefined in the spectrum of “New Normal.” Dealers are
hopping on the e-commerce train, wishing that their products will go viral to survive
this virus outbreak. Meetings, business activities and even trade exhibitions are being
carried out in the virtual world. Even farmers and entrepreneurs are being trained toimprove their online literacy and skills to access the expanding e-commerce market.
Furthermore, Thailand is putting more efforts in research and technology,
particularly in innovative medical treatment and solutions. Thailand now have assistantrobots and telemedicine to help doctors and nurses take care of patients from a distance.
All these efforts will bolster Thailand’s economy just as when the Asian
economic crisis hit the country back in 1997. Back then, the Sufficiency Economy
Philosophy was introduced by His Majesty King Bhumibol Adulyadej The Great toencourage a more balanced approach to development based on reasonableness andmoderateness. It is time to re-explore this philosophy as an immunity against any future
external shocks.

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It will be a long road to recovery before Thailand resume normalcy and oureconomy regains momentum. But as long as Thailand remain committed toitsaspirations, the world will rebound and emerge with a stronger sense of resilienceand solidarity.

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