Retail association touts recovery strategies
Nath Vongphanich, president of the association, said in the first half of the year the retail sector had been under pressure from all directions, including political uncertainty, subdued consumption, declining investment and external factors such as the slow recovery of international tourism.
He added that the US's new tariff policy, which is currently imposing tariffs as high as 36% on Thai products, is a key concern.
"Thailand must negotiate for lower rates, ideally on par with Asean peers such as Vietnam, Malaysia and Indonesia, to avoid adverse impacts on small businesses and preserve national competitiveness and employment," said Mr Nath.
He said other external challenges, including the tensions in the Middle East and the Thai-Cambodian border spat, have also affected consumer confidence and overall economic sentiment.
Mr Nath said the private sector is closely monitoring the government's rollout of effective economic policies and is calling for tangible recovery measures in the second half of the year.
The association recommended two key strategies to support economic recovery during this critical period.
The first strategy calls for targeted fiscal stimulus to reinvigorate spending nationwide.
The initial 115 billion baht from the total budget of 157 billion baht should be swiftly implemented, with a focus on community-based projects, tourism and infrastructure.
He said in tourism, urgent safety improvements are essential.
An additional 40–50 billion baht in residual budget should be used to boost grassroots purchasing power and support small and medium-sized enterprises (SMEs). This support could include low-interest loan programmes.
The association suggested relaunching the "Easy E-Receipt Phase 2" or "Shop Dee Mee Khuen" scheme between September and December to stimulate consumer spending during the peak holiday season.
He suggested the programme be simplified to encourage broader participation, covering general goods, One Tambon One Product (Otop) products and eco-friendly items, with a spending cap of 100,000 baht.
This could inject over 100 billion baht into the economy, Mr Nath estimated.
He added that accelerating budget disbursement by Sept 30 is vital to promptly infuse funds into the economy while preparation of the 2026 budget bill must also stay on schedule to ensure seamless policy execution.
The other key strategy is to position Thailand as a shopping destination to attract quality tourists.
To achieve this goal, the association recommended an instant 7% value-added tax refund at the point of sale for international tourists with a minimum purchase of 3,000 baht.
Other measures include reducing import duties on fashion, apparel, perfumes and cosmetics, which are currently taxed at 20–30%, to boost competitiveness against other countries in the region.
The government should consider establishing tax-free zones in major tourist provinces such as Phuket to increase tourist spending and encourage repeat visits over the long term.
The association also suggested launching a nationwide shopping festival to stimulate consumer spending and extending the duration of the visa-free period for Russian tourists from 30 to 45 days after the conclusion of the current programme.
He said Russian visitors represent a high-spending, long-stay segment that significantly contributes to the tourism economy.
The association also revealed the Retail Sentiment Index (RSI) for June, which hit a 42-month low.
The index showed a persistent decline across all components and regions, including average spending per bill and spending frequency.
Mr Nath said this downturn reflects the fragile state of domestic purchasing power, as both entrepreneurs and investors remain cautious and are delaying new investments, as they await clear and concrete government policies.
The downward trend is expected to continue into the third quarter, underscoring the sluggish recovery of consumer purchasing power and cautious spending behaviour, he said.
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